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December 13, 2017

Tax Reform - Preserve PAB for Affordable Housing and Economic Development

Over the past few weeks, House and Senate leaders have continued work on the pending Tax Reform legislation. We understand that conference committee members are actively negotiating the various provisions of the final bill, including PABs, and may be close to a final agreement.

We once again urge all affordable housing and economic development advocates to contact Colorado’s Congressional delegation, especially the Republican members, and ask them to urge the Tax Reform conference committee members, Speaker Ryan, Chairman Brady, Chairman Hatch, and Majority Leader McConnell to preserve tax-exempt PAB and to ensure its continued availability to support affordable housing and economic development finance.

To assist you in your outreach, we’ve included speaking points that highlight affordable housing as a critical part of our nation's infrastructure.

For more information about PAB in Colorado visit

Colorado Congressional Delegation List

Senator Michael Bennet (D-CO)

Senator Cory Gardner (R-CO)

Rep. Diana DeGette (D-1)

Rep. Jared Polis (D-2)

Rep. Scott Tipton (R-3)

Rep. Ken Buck (R-4)

Rep. Doug Lamborn (R-5)

Rep. Mike Coffman (R-6)

Rep. Ed Perlmutter (D-7)

Housing Infrastructure

Tax-exempt private activity Housing Bonds are critical to a pro-growth tax code. They produce safe, decent, and affordable housing that is a vital part of our nation’s infrastructure.

Housing Bonds bolster productivity and economic growth, connect workers to communities of opportunity, improve health and education outcomes, and support local job creation and increased incomes.

While uses for Private Activity Bonds (PABs) have broadened over the years, both multifamily rental production and single-family mortgages have been an allowable use of bond authority since Congress first defined PABs in 1968.

As House and Senate conferees reconcile differences between the chambers’ tax reform bills, they should keep in mind the essential role Housing Bonds play in addressing our nation’s affordable housing crisis by facilitating the building of multifamily rental properties and demand for single family owner-occupied housing, which are both key components of a successful infrastructure program.
  • Housing Bonds build vital public infrastructure. There is a serious shortage of affordable housing in our country. Housing Bonds add to our stock of affordable housing and produce a valuable and durable public resource that will likely last for many decades. More housing generates additional infrastructure and other activity as communities grow and flourish.

  • Right now, high housing costs constrain opportunities for families to increase earnings, causing slower GDP growth. The lack of safe and accessible affordable housing in major metropolitan areas is costing Americans approximately $2 trillion a year in lower wages. The lack of affordable housing prevents lower income households from moving to communities with more economic opportunities and makes it difficult for businesses to attract and retain the workers they need.

  • Each dollar invested in affordable housing infrastructure boosts local economies and creates public-private partnerships that lift resident earnings and local tax revenue, as well as support job creation and retention. In fact, building 100 affordable rental homes generates $11.7 million in local income, $2.2 million in taxes and other revenue for local governments, and 161 local jobs.

  • An investment in affordable housing infrastructure is a direct investment in America’s families. Increasing and preserving affordable housing—especially in areas connected to good schools, well- paying jobs, healthcare, and transportation—helps families climb the economic ladder. Research shows that increasing access to affordable housing is the most cost-effective strategy for reducing childhood poverty in the United States.

  • The lack of affordable housing is thwarting economic growth and job creation in rural America. Rural business leaders cite the lack of affordable housing as a key issue in attracting and maintaining a vital workforce. Even when available, affordable housing is often dilapidated, not energy-efficient, and still unaffordable for the working poor or most vulnerable.

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