REALTORS®, Home Builders and Affordable Housing Advocates Rally Together to Denounce Federal Tax Reform Plan That Would Hurt Middle-Class Californians

SACRAMENTO, Calif., Nov. 15, 2017 /PRNewswire-USNewswire/ -- The CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.), together with members of California's homebuilding and housing community, including the California Building Industry Association and the California Housing Consortium, this week sent an open letter to President Trump and the California Congressional Delegation stating that Californians would be hurt significantly by the current tax reform plan.

An announcement – held yesterday in Sacramento at the Sheraton – coincided with full-page advertisements published in major California daily and national newspapers, including the Los Angeles Times, The Orange County Register, The San Diego Union-Tribune, The Fresno Bee, The Modesto Bee, The Sacramento Bee, Bakersfield Californian, The Wall Street Journal and Politico that call attention to the plan's numerous disincentives to homeownership. The full-page advertisement can be viewed here.

"Tax reform shouldn't hurt Californians, but this proposal does, in a big way," said C.A.R. President Steve White. "This plan eliminates important incentives that help first-time homebuyers and existing homeowners by capping the mortgage interest deduction and limiting property tax deductibility as well as capital gains exemptions. From the Oregon border south to San Diego, working Californians take a beating."

The House tax reform plan also includes the elimination of public activity bonds (PABs), undercutting housing credits that California has successfully used for decades to build affordable homes for low-and moderate-income families, seniors and veterans. Under the tax plan, California would lose $2.2 billion annually, leading to the loss of 20,000 affordable homes each year.

"Private activity bonds (PABs) are responsible for financing two-thirds of all affordable housing built in the state and make it possible for single mothers, seniors and veterans to have safe, affordable homes," said Marina Wiant, policy director for California Housing Consortium, a non-partisan advocate for the production and preservation of housing affordable to low- and-moderate-income Californians. "Instead of eliminating this successful program, the GOP should be wholeheartedly supporting and expanding the successful partnership of private sector resources, market forces and state-level administration."

The California Building Industry Association called on Congress to preserve property tax deductions and maintain the existing mortgage interest deduction of up to $1 million. "When the average home in California costs two-and-a-half times the national average, now is not the time to limit incentives to homeownership. Housing is a major stimulus to the economy, a tremendous job generator, and an essential component for lifting people out of poverty for first-time homebuyers and minorities and middle-class families," said Amy Glad, interim chief executive officer.

About the CALIFORNIA ASSOCIATION OF REALTORS®:
Leading the way® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS

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