House bill passed last week would deal a massive blow to affordable housing production throughout the state
What: Press conference
When: Tuesday, November 21; 11:00am
Where: Upper Post Veterans Community, 6210 Bloomington Rd, St. Paul, MN
What’s at stake:
- Over the past 10 years, nearly $2 billion in private activity bonds have supported the construction of more than 15,000 affordable rental homes across the state. But the tax reform bill passed by the House last week eliminates that vital tool.
- The House bill would have devastating impact on affordable housing production by eliminating tax exempt private activity bonds and the historic tax credit, and reducing the corporate tax rate without modifications to the Housing Tax Credit.
- Eliminating tax exempt private activity bonds would result in a loss of 3,400 affordable rental units in Minnesota each year.
- Just under 800 units of affordable housing that were awarded state funding last month would be unable to move forward if this bill passes in its current form.
- There’s still time to make sure the Senate passes a bill that continues these vital investments in our communities.
- Commissioner Mary Tingerthal, Minnesota Housing Finance Agency
- Commissioner Tingerthal will speak to the statewide impacts on affordable housing production and the ability to support first time homebuyers through proven programs at MHFA.
- Deidre Schmidt, CEO of CommonBond Communities
- CommonBond Communities is the largest provider of affordable housing and services in the Upper Midwest — and many of its projects would not have happened without the financing tools at risk in the tax reform bills.
- Kirsten Hagen-Kennedy, Mayor of North Branch
- Cherokee Place, a 48 unit affordable rental development in North Branch, was awarded funding from Minnesota Housing in October. The proposed tax reform legislation would mean these homes would be at risk of not being constructed.
- Barbara Jeanetta, Executive Director of Alliance Housing
- Alliance Housing creates tangible, long term housing solutions for homeless families and individuals. Minnesota Housing recently announced funding for Minnehaha Commons, 43 units of affordable housing for extremely low-income seniors, to be developed by Alliance Housing.
- Directly impacted residents, including veterans and families
- At CommonBond properties alone, nearly 5,000 families have a place to call home because of the resources that would disappear with in the House tax reform bill.
- State Senator Patricia Torres Ray (invited)
- State Representative Jim Knoblach (invited)
- Mayors James Hovland (Edina), Betsy Hodges (Minneapolis), and Chris Coleman (St. Paul)
- Mayors-Elect Jacob Frey (Minneapolis) and Melvin Carter (St. Paul) (invited)
Learn more about threats to affordable housing in the tax reform proposals — and the impact on Minnesota — at http://mhponline.org/blog/connect.
Contact: Kirsten Rokke, Communications Co-Chair for Homes for All or Carolyn Szczepanski, Director of Communications & Research at Minnesota Housing Partnership
Cell: Kirsten: 319-961-1402; Carolyn: 202-355-3048
About Homes for All MN:
Homes for All is a statewide coalition that advances shared policy initiatives that lead to housing stability for all Minnesotans. Homes for All supports statewide investment across Minnesota's Housing Continuum.