California Will Soon See Impact of GOP Tax Plan with Loss of Affordable Housing #realestate #homeownership #investment #finance

Source:  The Orange County Register

The new Republican tax overhaul will likely chop plans for thousands of new affordable homes in California and further squeeze low-income renters, but experts say the impact could have been more severe.

The tax law, signed by President Donald Trump, preserved two threatened federal programs that are key to building tens of thousands of affordable homes in California - low-income housing tax credits and tax-exempt private activity bonds.

But experts estimate the new tax rules could still reduce federal funding for subsidized housing in the state by 20 percent, translating to roughly $500 million a year of projects and 4,000 new units lost.

"The worst possible hits were taken out of the bill," said Carolina Reid, assistant professor of city and regional planning at UC Berkeley.

But, she added, "It does nothing to actually promote affordable housing."

Advocates say the need for affordable housing has become more visible and urgent, as Bay Area residents priced out of expensive apartments turn to alternatives - from sharing crowded houses and apartments with family, friends and strangers, to living in vehicles and RVs.

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