It could be that death by a thousand cuts will be the best description for Congress’ treatment of federal housing programs. The budget compromise for FY 2011 reached at the eleventh hour last Friday averted a government shutdown, but these reductions leave a number of housing programs severely hobbled.
On Monday, a bill was introduced to spur affordable housing development through a state tax credit. The tax credit, backed by the HousingJobs Campaign, would help fund rental housing intended for low- and moderate-income people.
At least half of all state or federally-funded rental housing developed in the state of Minnesota currently depends upon federal housing tax credits for the projects to be viable. This new proposal would expand the number of projects that would move forward.
Early fallout of budget reductions, a discussion of the upcoming Affordable Housing Plan, and approval of the tax credit priority plan were before the Minnesota Housing Finance Agency board at its March meeting.