During testimony before the House Ways and Means Committee on residential real estate and tax reform, Robert Dietz of the National Association of Home Builders (NAHB), noting 40 percent of renters pay more than 30 percent of their income for household rent, urged Congress to maintain the mortgage interest deduction, the Low Income Housing Tax Credit (LIHTC), and real estate tax deductions. He says LIHTC is the most effective tool for creating affordable housing, but the demand exceeds the financing capability of the program. “The solution is not to eliminate the most successful affordable housing program in the country, but to provide it with the resources necessary to address the shortage of affordable housing options in our cities and towns,” added Dietz. He said 70 percent of homeowners with a mortgage claimed the mortgage interest deduction in 2009; and homeowners pay $300 billion each year in real estate taxes, but that is not something in the federal tax debate. As MHProNews has learned, building 100 single-family homes creates more than 300 full-time jobs and generates $8.9 million in federal, state and local tax revenues that feeds into local communities and schools. “Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers. With the right policies in place, housing can be a key engine of job growth that this country needs,” said Dietz.
