As a result of reduced tax revenue from the 2017 corporate tax cuts enacted by President Donald Trump, the development of at least 15,000 affordable housing units has been either delayed or eliminated entirely, The Sacramento Bee reports.
The reason? A significant portion of affordable housing development happens as a result of the Low-Income Housing Tax Credit (LIHTC), a program that typically enjoys bipartisan support because it provides tax credits to private companies that fund low-income housing development. The Sacramento Bee reports, however, that as a result of the tax cuts, corporate tax rates dropped by 40-percent, shriveling the total available pool of funds available to fund initiatives like the LIHTC.
As a result, California built only 19,000 affordable homes with the funding in 2018, a 23-percent drop from 2016.
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