California Treasurer Warns Republican Tax Plan Hurts Housing Efforts
SACRAMENTO, Calif. (AP) - California Democratic leaders are urging Congress not to eliminate programs that helped finance roughly two-thirds of the state's recent affordable housing supply.
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State Treasurer John Chiang writes in a letter to Congress that parts of the Republican tax overhaul plan would "decimate" a critical tool in helping the state address its housing shortage. The letter is also signed by Democratic legislative leaders, two lawmakers, and housing and construction representatives.
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California lacks an estimated 1.5 million affordable rental units and costs are soaring.
The GOP tax plan eliminates a tax-exempt bond program and, without those bonds, developers can't apply for certain low-income housing tax credits. The credits help developers finance their projects.
A spokesman for Republican U.S. House Majority Leader Kevin McCarthy did not immediately comment.
Copyright 2017 The Associated Press.
