Congress Gets in Gear on HUD, Tax Credits
After a very long silence, leaders in the Senate on housing issues are finally speaking out about corruption in the Department of Housing and Urban Development (HUD), calling for the resignation of Secretary Alphonso Jackson.
Meanwhile, after years of inertia, Congress is moving bills that would make the low-income housing tax credit program more flexible and help attract more investment.
Sen. Patty Murray (D-Wash.) and Sen. Chris Dodd (D-Conn.) wrote to President Bush on March 21 asking him to request Secretary Jackson’s resignation. Murray chairs the HUD appropriations subcommittee and Dodd chairs the Senate Banking Committee.
In their letter, they said “The nation is in the midst of a housing crisis and it is imperative that the department be headed by a leader who can work tirelessly to find solutions to the problems plaguing the housing and mortgage markets.”
“During this critical period, the American people do not need a HUD secretary that is distracted by the clouds of Justice Department investigations and reports of an empanelled grand jury,” they went on.
Jackson may have incurred the wrath of Dodd and Murray by refusing to answer questions about his involvement in contracting decisions and his role in trying to punish the Philadelphia Housing Authority for refusing to sell a piece of land to an individual designated by HUD who is reportedly a friend of Jackson’s.
Meanwhile, Congress appears to be moving faster than usual on legislation to improve the tax credit program, giving industry leaders hope that even the Senate might actually pass a useful bill in this election year.
Some of the proposed changes have been on the table for years, but some are new and there is new urgency due to the current slowdown in corporate investment in tax credits. One very useful change would allow projects to get credits for up to 130 percent of basis where a high level of need is demonstrated. Another would allow the credits to be applied toward corporate and individual alternative minimum tax liability. The House Ways and Means Committee has been working on a bill for some time, including many “modernization” measures sought by the industry. The Senate bill is S. 2666, and it was introduced in February.
Meanwhile, after years of inertia, Congress is moving bills that would make the low-income housing tax credit program more flexible and help attract more investment.
Sen. Patty Murray (D-Wash.) and Sen. Chris Dodd (D-Conn.) wrote to President Bush on March 21 asking him to request Secretary Jackson’s resignation. Murray chairs the HUD appropriations subcommittee and Dodd chairs the Senate Banking Committee.
In their letter, they said “The nation is in the midst of a housing crisis and it is imperative that the department be headed by a leader who can work tirelessly to find solutions to the problems plaguing the housing and mortgage markets.”
“During this critical period, the American people do not need a HUD secretary that is distracted by the clouds of Justice Department investigations and reports of an empanelled grand jury,” they went on.
Jackson may have incurred the wrath of Dodd and Murray by refusing to answer questions about his involvement in contracting decisions and his role in trying to punish the Philadelphia Housing Authority for refusing to sell a piece of land to an individual designated by HUD who is reportedly a friend of Jackson’s.
Meanwhile, Congress appears to be moving faster than usual on legislation to improve the tax credit program, giving industry leaders hope that even the Senate might actually pass a useful bill in this election year.
Some of the proposed changes have been on the table for years, but some are new and there is new urgency due to the current slowdown in corporate investment in tax credits. One very useful change would allow projects to get credits for up to 130 percent of basis where a high level of need is demonstrated. Another would allow the credits to be applied toward corporate and individual alternative minimum tax liability. The House Ways and Means Committee has been working on a bill for some time, including many “modernization” measures sought by the industry. The Senate bill is S. 2666, and it was introduced in February.
posted by Andre Shashaty at 7:58 AM
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