Schumer, Cantwell Push National Plan to Increase Federal Resources In NYC for Affordable Housing & To Fight Homelessness

Press Release

U.S. Senators Charles E. Schumer (D-NY) and Maria Cantwell (D-WA) were today joined by local housing builders and advocates to urge Congress to expand the Low-Income Housing Tax Credit (LIHTC). Schumer and Cantwell pushed a national campaign, led by Cantwell, to increase federal resources for affordable housing. Schumer and Cantwell are calling for a 50 percent expansion of the LIHTC, and reforms to better target the lowest income populations. Since its creation 30 years ago, this tax credit has financed nearly 3 million homes across the United States, several thousand in New York City alone. The proposal would finance approximately 400,000 additional units of affordable housing nationwide over the next decade.

"Access to affordable housing is essential for the health of our families and the economic strength of our communities and that's why expanding the federal low-income housing tax credit is so important,"said U.S. Senator Charles E. Schumer. "The key to New York's continued growth and economic strength is directly tied to the need to expand our pool of affordable housing for young people, for new families and for others -- and the federal government, via this tax credit, needs to be a full partner in that effort. With thousands of homeless and housing-needy people in New York City alone, we need to do all we can to provide families and children with safe and affordable housing options. This tax credit has already financed millions of homes across the country and this national plan will help finance hundreds of thousands more. I will continue to fight tooth and nail in Congress, alongside my colleague Senator Cantwell, to make sure these tax credits are expanded."

"Like Washington State, New York and our nation as a whole face serious challenges when it comes to affordable housing and homelessness. The Low Income Housing Tax Credit is a critical tool that communities across the nation can use to address these issues. The project that we are visiting today, Phipps Houses, is a perfect example of how housing tax credits can bring together federal, state, local, nonprofit and investors to solve one of our most pressing problems. Nationally, we estimate that our legislation will allow an additional 400,000 units of affordable housing to be built over the next ten years, including an additional 14,000 in New York state," saidU.S. Senator Cantwell.

"Given the affordable housing crisis in New York City and across the country, we cannot thank Senator Cantwell and Senator Schumer enough for their vision and leadership in the effort to increase and improve the Low Income Housing Tax Credit," said Gary Rodney, President of The New York City Housing Development Corporation. "Already the most powerful affordable housing tools of the last three decades, the federal 4% and 9% tax credits will become even more efficient and effective through the legislation that is being put forth. The proposed changes will enable the credits to serve even more low-income households across the full spectrum of need, while fostering more diverse and dynamic communities."

In 2014 "Phipps Houses" and "The Door" partnered to open the East 9th Street supportive housing development. This facility provides supportive and permanent single and family housing for 40 young adults aged 18 to 26 years old who are chronically homeless and have a serious mental illness. In this partnership, Phipps Houses is responsible for managing and operating the building, and The Door is responsible for coordinating and providing supportive services to residents to help them achieve long-term self-sufficiency.

According to Phipps, the federal low income housing tax credit is an integral part of its projects' financing. In fact, Phipps has developed several thousand housing units in the last decade only using tax credits.

Advocates say there is an urgent need for more housing opportunities like Phipps Houses on East 9th Street. According to the Coalition for the Homeless, there were over 60,000 homeless people in February 2016 sleeping in the New York City municipal shelter system. According to Phipps, on any given night, there is an estimated 3,800 homeless young people in New York City; 1,600 young people sleep on the street, in abandoned buildings or on public transportation. However, only 6% of New York City's population of runaway and homeless youth can be housed with the current number of housing units currently designated for young adults.

Schumer and Cantwell were joined by NYC HDC President Gary Rodney, Judi Kende of Enterprise Community Partners; Julie Shapiro of The Door; Rachel Fee of the New York Housing Conference; Jolie Milstein of the New York Housing Conference; Laura Maschuch of Supportive Housing Network of New York; Jamie Rubin, Commissioner of NYS Housing and Community Renewal and representatives of local housing organizations including: Community Development Futures, Settlement Housing Fund, Forsyth Street Advisors, LiveON NY, ANHD and LISC.

In addition to calling on Congress to expand the Low-Income Housing Tax Credit, Schumer and Cantwell also released a report titled, "Addressing the Challenges of Affordable Housing & Homelessness: The Housing Tax Credit," which found that across the country there are 3.9 million extremely low-income families.According to the Urban Institute, in New York State there are 871,841 extremely low-income households competing for 269,115 affordable housing units. Since its creation in 1986, the Low-Income Housing Tax Credit has helped develop or preserve over 170,290 homes in New York, providing affordable housing to 395,610 households in New York and generating over $18 billion in local income. That includes over 122,000 units in New York City alone.

In December of last year, Cantwell championed the LIHTC and secured a critical fix to the program by permanently extending the credit rates to 9 percent of eligible costs on new construction. This ended an era when variable rates made financing of affordable housing less predictable.

Since its creation 30 years ago, this tax credit has financed nearly 3 million homes across the United States, leveraging more than $100 billion in private investment.

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