Even though the bipartisan Super Committee failed to reach a budget deal in November, tax reform isn’t going away. Most believe it’s going to happen in some shape or form.
“The affordable housing industry needs to be incredibly diligent in preparing for it,” said David Gasson, executive director of the Housing Advisory Group (HAG) and vice president of Boston Capital.
With members of Congress intent on tax reform, everything will be on the table, including a reduction or outright elimination of the low-income housing tax credit (LIHTC) program.
As different deficit-reducing proposals surface in the months ahead, the industry will have to be poised like an emergency response team, according to Gasson. “As soon as something happens, we have to be on top of it,” he said.
That means educating lawmakers about the value of LIHTC program and engaging them in a discussion.
“The good thing is that tax reform is a long process,” Gasson said. “We want it to be a long and deliberative process where we can get into the offices of members of Congress and make sure people understand the net effect of what they are proposing for the tax credits.”
HAG and other industry groups continue to meet with representatives in Washington, D.C., but the battle will be won in the districts, where lawmakers can see and experience LIHTC properties, stressed Gasson.
“If folks in each and every state are not working with their senators and Congress members, we’re in big trouble,” he said.