Representative Bobby Rush (D-IL) became the 15th cosponsor of H.R. 1213 on September 16. H.R. 1213 is Representative Keith Ellison’s (D-MN) bill that is based on the United for Homes (UFH) campaign proposal to fund the National Housing Trust Fund (NHTF) with resources gained from two modifications to the mortgage interest deduction.
The first modification would convert the mortgage interest deduction to a 15% non-refundable tax credit, enabling 16 million more homeowners to benefit who are not wealthy enough to itemize their taxes and take the deduction. The second modification would limit the 15% tax credit to the first $500,000 of a mortgage; current tax policy allows a deduction up to the first $1 million of a mortgage.
The two modifications would result in more than $200 billion in revenue raised over ten years. The UFH campaign proposal would direct 100% of the new revenues into the NHTF. Mr. Ellison’s bill, which NLIHC strongly supports, would direct the majority of funds to the NHTF, but also would increase funding for public housing, Section 8, and Low Income Housing Tax Credit programs.