Parts of the Tax Cut and Jobs Act advancing in the U.S. Congress modify existing mortgage and homeownership provisions of the tax code to eliminate or restrict access to homeownership incentives. This is simply not good for the economy or the community association housing model.
Two areas of tax reform are significant to the community association housing model-the mortgage interest deduction and deduction of local property taxes.
- CAI strongly supports the existing mortgage interest deduction, a national policy that makes homeownership a reality for millions of households. The mortgage interest deduction protects homeowner equity and supports new household formation by ensuring tomorrow's families can follow the same path to homeownership as those before them.
- Removing a taxpayer's ability to deduct local property taxes from their federal tax liability is a strong disincentive to homeownership and is a federal tax increase households. Eliminating or limiting the deduction for local property taxes will have a profoundly negative impact on housing affordability in the community association housing model, which is already burdened by dual taxation.
CAI calls on lawmakers to oppose these areas in the current reform proposals and craft legislation that provides tax relief for American households, ensures the competitiveness of American enterprise, and maximizes the macroeconomic and household benefits of homeownership.
Thank you for acting on this important issue! If you have any questions, please contact us anytime.
CAI's Government & Public Affairs Team