Bill Text: NJ SJR65 | 2014-2015 | Regular Session | Introduced
Bill Title: Urges Congress to pass "Common Sense Housing Investment Act of 2013," which converts mortgage interest deduction to tax credit and dedicates money saved to National Housing Trust Fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2015-01-12 - Received in the Assembly, Referred to Assembly Housing and Community Development Committee [SJR65 Detail]
Download: New_Jersey-2014-SJR65-Introduced.html
Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Urges Congress to pass "Common Sense Housing Investment Act of 2013," which converts mortgage interest deduction to tax credit and dedicates money saved to National Housing Trust Fund.
CURRENT VERSION OF TEXT
As introduced.
A Joint Resolution urging Congress to pass the "Common Sense Housing Investment Act of 2013," which converts the mortgage interest deduction to a tax credit and dedicates the money saved to the National Housing Trust Fund.
Whereas, There is a shortage of more than seven million homes affordable to families in the bottom 20 percent of income, meaning that there are only 30 affordable units for every 100 American families; and
Whereas, A two-bedroom apartment is unaffordable to 59 percent of renters in New Jersey and it takes three full-time minimum-wage salaries to afford a market-rate two-bedroom apartment in this State; and
Whereas, According to the Harvard Joint Center for Housing Studies, more than one in four renter households spend at least half of their monthly incomes on housing, forcing families to decide between paying rent and buying groceries, keeping the lights on, or buying medicine; and
Whereas, Seventy-six percent of extremely low-income renter households in New Jersey devote more than half of their incomes to rent; and
Whereas, The National Housing Trust Fund is a permanent federal program, funded with dedicated sources of revenue not subject to the annual appropriation process, to provide revenue to build, preserve, and rehabilitate housing for extremely low-income and very low-income households; and
Whereas, The "Housing and Economic Recovery Act of 2008" established the National Housing Trust Fund, which Freddie Mac and Fannie Mae initially funded until the Director of the Federal Housing Finance Agency suspended their mandatory contributions when the enterprises were placed under conservatorship; and
Whereas, The National Housing Trust Fund has been empty since its inception in 2008 and the Federal Housing Finance Agency failed to even reference the fund in the agency's most recent five-year strategic plan released in August 2014; and
Whereas, A capitalized National Housing Trust Fund would allow the federal Department of Housing and Urban Development to award block grants to states based on statutory factors, and the National Low Income Housing Coalition estimates that for every $5 billion appropriated to the National Housing Trust Fund, $168.6 million would be allocated to New Jersey; and
Whereas, The mortgage interest deduction allows taxpayers who own their homes to reduce their taxable incomes by the amount of interest paid on their mortgages; and
Whereas, In 2012, 77 percent of all mortgage interest deductions were taken by households with incomes over $100,000, while households with incomes below $50,000, only received three percent of the benefits; and
Whereas, On March 15, 2013, Congressmen Keith Ellison and Bobby Scott introduced H.R.1213, the "Common Sense Housing Investment Act of 2013," which converts the mortgage interest deduction to a 15 percent tax credit, limits the credit to $500,000 mortgages, down from the current deduction's cap of $1 million, and dedicates the money saved to various housing assistance programs; and
Whereas, The changes to the mortgage interest deduction would save $196 billion over 10 years and enable 16 million more people who currently hold a mortgage to receive a tax benefit; and
Whereas, The savings created by the "Common Sense Housing Investment Act of 2013" would be committed to the National Housing Trust Fund, the Public Housing Capital Fund, the Low-Income Housing Tax Credit, and Section 8 housing choice vouchers; and
Whereas, Many Americans would benefit from a capitalized National Housing Trust Fund to build, preserve, rehabilitate, and operate rental housing that is affordable for low-income households; now, therefore,
Be It Resolved by the Senate and General Assembly of the State of New Jersey:
1. The Governor and the Legislature of the State of New Jersey respectfully urge Congress to pass the "Common Sense Housing Investment Act of 2013," which converts the mortgage interest deduction to a tax credit and dedicates the money saved to the National Housing Trust Fund.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted to the Speaker and Minority Leader of the United States House of Representatives, the Majority and Minority Leaders of the United States Senate, and to each member of Congress elected from this State.
3. This joint resolution shall take effect immediately.
STATEMENT
This joint resolution urges Congress to pass the "Common Sense Housing Investment Act of 2013," which converts the mortgage interest deduction to a 15 percent tax credit, limits the credit to $500,000 mortgages, down from the current deduction's cap of $1 million, and dedicates the money saved to the National Housing Trust Fund.
On March 15, 2013, Congressmen Keith Ellison and Bobby Scott introduced H.R.1213, the "Common Sense Housing Investment Act of 2013." The bill eliminates the mortgage interest deduction and replaces it with a 15 percent tax credit. The tax credit is available when the aggregate amount of indebtedness on real property does not exceed $500,000, a reduction from the $1 million cap of the current mortgage interest deduction. The savings created by the "Common Sense Housing Investment Act of 2013" would be committed to the National Housing Trust Fund, the Public Housing Capital Fund, the Low-Income Housing Tax Credit, and Section 8 housing choice vouchers.
The mortgage interest deduction allows taxpayers who own their homes to reduce their taxable incomes by the amount of interest paid on their mortgages. Under the current mortgage interest deduction, 77 percent of all benefits were awarded to households with incomes over $100,000 in 2012, while households with incomes below $50,000 only received three percent of the benefits. The change to the mortgage interest deduction would enable 16 million more people who currently hold a mortgage to receive a tax benefit.
The National Housing Trust Fund is a permanent federal program, funded with dedicated sources of revenue not subject to the annual appropriation process, to provide revenue to build, preserve, and rehabilitate housing for extremely low-income and very low-income households. The Housing and Economic Recovery Act of 2008 established the National Housing Trust Fund, but the fund has remained unfunded since its inception. The Director of the Federal Housing Finance Agency suspended mandatory contributions by the intended financers of the fund, Freddie Mac and Fannie Mae, when the enterprises were placed under conservatorship.
There is a shortage of more than seven million homes affordable to families in the bottom 20 percent of income, meaning that there are only 30 affordable units for every 100 American families. A two-bedroom apartment is unaffordable to 59 percent of renters in New Jersey and it takes three full-time, minimum-wage salaries to afford a market-rate two-bedroom apartment in this State. Moreover, 76 percent of extremely low-income renter households in New Jersey devote more than half of their incomes to rent, forcing families to decide between paying rent and buying groceries, keeping the lights on, or buying medicine.
The Governor and the Legislature of the State of New Jersey urge Congress to pass the "Common Sense Housing Investment Act of 2013" to capitalize the National Housing Trust Fund to help build, preserve, rehabilitate, and operate rental housing that is affordable for low-income households.
