Opportunities at the State Level
By Peter Bell
3 min read
As I write this column, I am preparing to head to Knoxville to attend the bi-monthly meeting of the Board of Directors of the Tennessee Housing Development Agency and its tax credit committee. On the agenda are updates to the state’s Qualified Allocation Plan and enhancements to its multifamily bond program.
A coalition of industry participants, spearheaded by some of the most active affordable housing developers in the state and organized as the Tennessee Developers Council, an autonomous committee under the umbrella of NH&RA, has been participating in an ongoing dialogue with the agency’s staff and board about ways that the state’s programs can support a higher volume of production. If the THDA Board accepts the recommendations set forth by their staff and others, it will be a great boost for affordable housing, generating jobs and demand for durable goods in the state.
In Maryland, the affordable housing industry, since enactment in 2011 of the Rental Housing Works program, has been deploying $37.5 million in state funds, specifically appropriated to leverage the bond allocation authority that was going unused due to the lack of soft money to support projects. The Maryland Affordable Housing Coalition adroitly pointed out that the state was passing up the opportunity to use $170 million a year in bond authority, instead sending the resource back to Washington unused. Rental Housing Works was promoted and adopted as part of the governor’s jobs initiative, and is proving to be a significant employment generator.
I focus on these initiatives because as we see Congress in a state of uncertainty and paralysis on housing policy and tax reform, I think it’s important that we build cognizance of what we do, and the important contribution it makes, on a state-by-state basis. There are several reasons to do this.
No matter what eventually happens with federal policy on housing, taxes, and GSEs in the future, the states are bound to become more important players on housing matters. It’s important to build their capacity now.
Elected state officials, if knowledgeable about our industry, are often in a strong position to be influencers of their representatives in Washington. They can be very strategic allies in efforts to preserve the federal tools we work with.
Governors’ survivability often depends on the voters’ perceptions of their ability to generate jobs and create a flourishing economy. What we do has proven, for decades now, to be an effective economic stimulus.
There are organizations like Maryland’s coalition and our Tennessee Developers Council in other states, and it’s important that they all gain your support. At NH&RA, we are always ready to assist, whether it is a matter of providing information and content to an existing state association or working with local interests to organize a Council as we have done in Tennessee. Let us know if we might be of assistance.
Peter Bell is President & CEO of National Housing & Rehabilitation Association and Publisher of Tax Credit Advisor.
