News Department

Senator Menendez questions impact that SALT cap has on housing affordability for working families

Suggests use of Low-Income Housing Tax Credits as a tool to build more affordable housing

WASHINGTON, D.C. U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Finance Committee, questioned witnesses Tuesday during a hearing entitled, “Tax Policy’s Role in Increasing Affordable Housing Supply for Working Families” about the impact the $10,000 state and local tax (SALT) cap has on middleclass families.

“The 2017 Republican Tax Law gutted this essential deduction, not for large corporations, but for families—forcing them to be double-taxed and punishing states with progressive tax codes that choose to invest in their communities,” Menendez said. “New Jersey has some of the best schools in the nation, it has a vast infrastructure system in terms of transportation – these are all elements that make it a desirable state to live in.”

“Historians like Andrew Kahrl at the University of Virginia have found Black and Hispanic households have been subject to higher property tax assessments than their White counterparts,” Menendez said. “The SALT deduction has been vital in providing relief from unjust tax assessments, which is why the NAACP passed a resolution in support of lifting the cap. I’m going to continue to revisit this issue until we get it right.”

Sen. Menendez also questioned witnesses about what it would mean for the development of new multifamily buildings if Congress increased Low Income Housing Tax Credit’s (LIHTC) value and total amount of credits as outlined in the Affordable Housing Credit Improvement Act, of which he has previously cosponsored.

“So as a nation we have to find ways to build more affordable homes, and part of that solution should come from our new investments, but we also need to make maximally effective use of existing tools, such as the bipartisan Low Income Housing Tax Credit which subsidizes the creation of 100,000 units of affordable housing a year, but I think it has the potential to do even more,” Menendez said.

The Senator highlighted the proven track record Community Development Financial Institutions (CDFI) have of delivering financing for the development of affordable housing in underserved communities. This is the reason Sen. Menendez led the effort to establish the CDFI Bond Guarantee Program, which enables the CDFIs to execute large scale development programs.

Sen. Menendez urged his colleagues to join in strongly supporting funding for CDFIs as the deal with the FY2024 appropriations.

Sen. Menendez has continued his decades-long advocacy to support access to capital for underserved communities through CDFIs. In a Subcommittee hearing this January, Sen. Menendez highlighted how the much-needed assistance CDFIs provide to minority- and women-owned business hit hardest by the COVID-19 pandemic, as well as during the creation of key community services such as housing, childcare centers and healthcare facilities.

The Senator highlighted the importance of SALT deductions in reducing the racial wealth gap at a full committee hearing in July 2022. Sen. Menendez pointed out how high property tax assessments are an additional burden on homeowners, specifically amongst middle and low-income families, and often in minority communities.

Jay Edwards

Born and raised in Northwest NJ, Jay has a degree in Communications and has had a life-long interest in local radio and various styles of music. Jay has held numerous jobs over the years such as stunt car driver, bartender, voice-over artist, traffic reporter (award winning), NY Yankee maintenance crewmember and peanut farm worker. His hobbies include mountain climbing, snowmobiling, cooking, performing stand-up comedy and he is an avid squirrel watcher. Jay has been a guest on America’s Morning Headquarters,program on The Weather Channel, and was interviewed by Sam Champion.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button