LEGISLATION
TRL'S Legislative Agenda
Long term imbalances and biases in Housing Policy have favored home buying over renting that predate the 2008 housing crash by approximately 90 years!
The Renter's Lobby is the only organization projecting rough equivalency between Rentership and Homeonwership Rates by 2040. These projections were published in 2010. It's well past the time for Congress and the Home Ownership Lobby to accept the realities of the New Economy and Demography of America. It's time to come to terms and conditions in the 116th Congress.
Notwithstanding foreclosed and underwater home buyers, renters have carried the costs of this failure through declining affordability, lack of inventory, higher rent and double or even triple taxation. President Obama declared early in his presidency there must be a "renewed commitment to affordable rental housing." Nothing changed and the Affordable Housing Crisis is now an unsolvable Chronic problem. There are no legislative fixes. Washington's Home Building Tool Box is worn-out.
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At the time of President Obama's declaration in 2011, there were 32 affordable rental homes for every 100 families in the market.
This widely quoted ratio from Harvard's Joint Center on Housing Studies has NOT changed.
We begin our lobbying efforts researching and identifying opportunities within the current federal budget to exploit areas of redundant appropriations. Both the Government Accounting Office (GAO) and the Office of Management and Budget (OMB) have identified up to $170 Billion in overlapping housing programs and tax credits. The federal agencies responsible for these duplicated and redundant programs are mandated by Congress to allocate these assets to more cost-effective programs. We believe billions of annual expenditures can now be actively pursued on behalf of residential renters for a variety of cost-effective rental housing programs.
Notwithstanding Dodd-Frank, the creation of a Consumer Financial Protection Board (CFPB), an infinite number of mortage foreclsoure recovery programs along with on-going attempts to reform Fannie Mae, Freddie MAC and the rest of the GSE Mortgage Complex the housing sector is moribund.
Unfortunately, the impact in the rental housing sector has been devastating. Despite a 25 year high in multi-family apartment construction, rental demand is the result of an unprecedented decline homeownership rates versus historical improvement in business-eocnomic cycles. The chronic stagnant economy has created an on-going housing crisis for a majority of American renters.
The Renter's Lobby is working to counter unwarranted and dangerous housing policy bias that promotes unsustainable homebuying and highly leveraged home financing. Counterproductive regulations and monetary policy is re-inflating housing price bubbles in California and other regions around the country.
Countering the housing lobby with reasonable policy alternative from The Renter's Lobby helps all parties check the status-quo from repeating the mistakes of the past.
The following issues are addressed through TRL legislation initiatives, federal and state regulatory reform and innovations in public and private sector housing development and financing.
Rental Housing Reform Legislation:
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Residential Renter Pay-As-You-GO Budget Re-Allocation Funding Initiatives
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Renter New Market Tax Credit Re-Allocation
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Tenant Centric Equity RAD Credits v. LIHTC Developer Credits
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Repeal Mortgage Interest Tax Deduction (MITD)
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Repeal 1986 TRA Consumer - Consumer Loan - Credit Card Interest Deduction
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Expansion of HUD Rental Assistance Development (RAD)
New Housing Rental Legislation
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Renter's High Definition FICO Fair Credit Act
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REO Single Family Rental Payment Database Act
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National Renter's Tax Credit
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State Renter's Tax Credit
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GSE Rent Recovery Act
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Expansion of HUD Rental Assistance Development (RAD)
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High Definition FICO Rental Payment History
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Rental Security Deposit Federal RE-Insurance Surety Bond
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Renter Savings & Investment Rent to Own Equity Tax Credits
Regulatory Reform and Relief
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Single Family Rental Housing Quality of Living (QOL) Standards
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Multi-Family Rental Housing Quality of Living )QOL) Standards
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Construction - Building Technologies Cost Benefit Impact & Review Statements
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Modular Building Industry Expansion
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Modular-Manufactured-Pre-Fabrication Cost Benefit Zoning and Tax Credit
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Rent v Buy "All Or Nothing" Legislation - ReBuilding the American Dream
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Rent to Own Tax Credit Plans
50% Homeownership Rate?
"Before we sit down with policymakers, Members of Congress or anyone else involved in the housing sector we make certain our definition of 'homeownership' is crystal clear."
John Romanin, President
The Renters's Lobby
Mortgage Interest
Tax Reform
We want the $100 Billion in annualhome-buyer tax subsidies in the form of the
Mortgage Interest Tax Deduction (MID) shared with renters.
Let's make it happen. There are many very fair ways this can be offset so we don't add to the federal budget and everyone can come out winners. We're proposing a national Renter's Tax Credit or Renter Tax Rebate! A National Tax Credit is just one of ways The Renter's Lobby will create tangible returns to hard working residential renters. Nearly 80% of all Americans, mostly renters, live from paycheck to paycheck. IT'S TIME TO REFORM AND ULTIMATELY REPEAL THE MORTGAGE INTEREST TAX DEDUCTION!
Support TRL's "flip-the-MID!"
The Renter's Lobby TASK FORCE is leading the way!
There is virtual UNANYMITY in the country, not just in Washington D.C. FOR repeal of the MORTGAGE INTEREST TAX DEDUCTION.
The Renter's Lobby is taking the LEAD!
It's important to remove the misperceptions of homeownership that have taken root over the years. It is much more accurate to depict those without a minimum of 20% real equity in their house as loanowners and debt-obligors. They are NOT homeowners.
By definition, the MITD is NOT a 'homeowners" tax deduction. Actual homeowners don't need it. Only Americans in the process of paying down massive interest expense on a long-term mortgage as they're procuring their house can qualify for this tax deduction or subsidy.
National Renter
Tax Credit
ONE OF THE BEST KEPT TAX SECRETS AT THE STATE AND NATIONAL LEVEL ARE QUALIFIED RENTER TAX CREDITS & REBATES! Eighteen (18) States provide some degree of renter's tax relief under programs known as "CIRCUIT BREAKERS." They've come to be known by that name because they are designed to shut off the property tax bill at a certain point just like an electric circuit breaker shuts off the current when the circuit becomes overloaded. For years tax policy makers and industry have recognized a fundamental IMBALANCE imposed on renters. Select well-meaning State Legislatures have passed renter tax relief to reduce what is a de-facto surtax on residential renters.
This amounts to a double tax and is unfair and unnecessary. Passage of a National Renter's Tax Credit is a major goal of the flip-the-MID campaign a primary policy and legislative initiative of The Renter's Lobby.
Included in our proposed legislation is a much larger issue dealing with a tax advantage that all Americans enjoyed before it was taken away by the Tax Reform Act of 1986. All American Consumers prior to this Act were allowed to deduct all personal interest paid on consumer loans and Credit Cards. For the average American including all Renters this can amount to at least $2,500.00 in very real additional personal cash flow per year. That can cover a lot of rent payments! Added to the projected allowance under TRL's National Renter Tax Credit millions of Americans will begin to realize new hope and visions of the American Dream which for most Americans is FINANCIAL SECURITY!
GSE Reform
& Social Impact Bonds
There are three primary proposals on Capital Hill to REFORM Fannie Mae, Freddie Mac et. al. For a summary comparison of the three plans click here.
"The single most important thing that policymakers can focus on is the fact that Fannie Mae's and Freddie Mac's multifamily book (READ RENTERS) of business are
platinum.
Rentel property (READ RENTERS) serious delinquencies are about 1/2 of 1 percent
versus a serious delinquency rate for CMBS (READ HOMEBUYERS)of about 10 percent."
The National Multi-Family Housing Council said this about GSE Reform and Renters in general.
"Up to HALF the housing units that are going to be built over the next 20 to 25 years are going to have to be rental in order to
accomodate demand."
Douglas Bibby, President
National Multi Housing Council
Washington, DC.