Federal Policy Priorities

The Federal Government plays a critical role in all aspects of community development, providing funding for many important programs, regulating housing and financial markets, enforcing fair housing and civil rights laws, and using these levers to shape and drive community development practice. MACDC is a member of the National Alliance of Community Economic Development Associations (NACEDA), the National Community Reinvestment Coalition (NCRC) and many other national organizations. We work with and through these national partners to shape and influence federal policy. Some of the key issues in 2014 include:

  • Federal Budget Priorities – In recent years, the federal government has imposed significant funding cuts on all of the housing, community and economic development programs that our members rely on to revitalize communities and expand economic opportunity. These programs include CDBG, HOME, Section 8, SBA, CDFI, and many others. In December 2013, the Congress’s Budget Conference Committee reached an agreement on federal spending, restoring some funding to programs that sustained severe cuts mandated by sequestration.  As Congress finalizes FY14 appropriations (and then begins work on FY 2015), MACDC believes it is essential that it provide sufficient funding to prevent further loss of affordable rental housing units for the nation’s low income households and to fund other community development programs that are critical for low income communities. For the most recent budget alerts from the National Low Income Housing Coalition, CLICK HERE.
  • Low Income Housing Tax Credits & New Market Tax Credits – The LIHTC and NMTC are both widely successful programs that have leveraged private dollars to build homes and create jobs throughout the United States. As Congress contemplates so-called Tax Reform, MACDC is concerned that one or both of these programs could be eliminated or reduced if Congress does not take a thoughtful approach to tax reform. These programs work and should be expanded not reduced. We recently signed on to this letter to Congress: CLICK HERE for the letter. For more information on the LIHTC, CLICK HERE. 
  • Mortgage Interest Deduction Reform – The Mortgage Interest Deduction (MID) is by far the largest housing subsidy program in the Federal Budget and it overwhelmingly benefits upper income households.  MACDC supports H.R. 1213, the Common Sense Housing Investment Act of 2013 filed by Rep. Keith Ellison. (CLICK HERE for the legislation.) This legislation would reform the MID to better target the tax benefits to low and moderate income homeowners and redirect the savings to fund the National Affordable Housing Trust Fund and other housing programs, like the LIHTC.
  • GSE Reform – Coming out of the financial crisis of 2008, Congress is expected to pass sweeping legislation that reforms the key Governmental Sponsored Entities (GSEs) that play a critical role in the housing market – Fannie Mae, Freddie Mac and possibly the Federal Home Loan Bank. MACDC believes that any such reform must ensure that low and moderate income households can continue to access fair and affordable home mortgage lending products. We also believe Congress needs to ensure that these entities continue to support multi-family housing and affordable housing as a core part of their mission.  For more information CLICK HERE.
  • Community Reinvestment Act – The Community Reinvestment Act plays an essential role in bringing capital to communities and families that would otherwise be poorly served by the banking industry. We believe that the CRA must be expanded and strengthened so that the entire financial services industry is covered and to ensure effective enforcement. If legislation is not enacted, we believe that the regulators need to work within the current statutory framework to strengthen enforcement and broaden coverage.  For more information, CLICK HERE.

Documents:

Comments to Federal Gov

Letters