A message from HCIDLA General Manager Rushmore D. Cervantes pertaining to the implications of House Tax Reform Bill (H.R. 1) and how it might affect affordable housing going forward:

As most of you are aware, the House Tax Reform Bill (H.R.1) proposes the elimination of both Private Activity Bonds and their companion 4%-Level Housing Credits.  While the Senate version released yesterday gives us some comfort (it does not call for elimination), the uncertainty created by the House’s proposal has caused the lending and investment communities to evaluate their contingency options should it still come to pass.

HCIDLA has been in active discussions with bond counsels, financial advisors, lenders, and our City colleagues around the potential impacts of this legislation, as well as the actions that HCIDLA may need to take to support the projects impacted by this situation.  Over the next couple of days, HCIDLA will evaluate the need for bond document revisions and other actions, and then plan the next steps with the financing teams for each affected project.  

Working with SCANPH, we are planning to have a general briefing call with all interested parties on our work on this issue later next week.  In the meantime, please know that the City is committed to working with our bond investor/lender partners to make sure that our bond projects continue to move forward to completion and delivery of their much-needed affordable units.

Thank you all in advance for your efforts.

Rushmore Cervantes
General Manager – HCIDLA