Membership Messages

Weekly Advocacy Newsletter November 21, 2017

The Latest

  • Tax Bill – You are leaders in your community and it will matter for Congresspeople in district on Thanksgiving recess to hear from you!
  • Fannie Mae and Freddie Mac re-enter LIHTC market
  • Federal Flood Insurance Bill passes House

 

Longer Term

  • Map of rural broadband access

 

 

The Latest

 

Both House and Senate tax bills advanced last week. If you have not, please reach out to your elected representative in the home district for Thanksgiving recess. You are leaders in your community and it will matter to hear from you! Here are the letters we sent on the House and Senate Tax bill if helpful.

Here’s what’s happened: On November 16, the House approved its tax bill on a vote of 227-205 and the Senate Finance Committee approved its version of the bill. As noted last week, the bills both throw the tax credit mechanism into disarray by lowering the value of tax credits with a corporate tax reduction to 20 percent from 35 percent. And overall, these bills as written are a bad deal for the families we’re working for. A reduction of a few hundred dollars in individual income taxes is not worth these bills’ crowding out of investments in jobs, infrastructure, and health & retirement that benefit our region.

 

On a more positive note, Fannie Mae and Freddie Mac will reenter the LIHTC Market as equity investors. Each will have a $500 million annual limit and any investments above $300 million in a given year must be in markets that have difficulty attracting investors. “Most of the Enterprises’ investments will be used to facilitate transactions that support underserved markets and complement our Duty to Serve priorities,” said FHFA Director Mel Watt. Fahe has been among the stakeholders supporting Fannie Mae and Freddie Mac’s return to the LIHTC investment market. Moreover, last week, Fahe hosted senior Fannie Mae staff on a two-day tour in Eastern KY and TN to help them understand how their Duty to Serve underserved markets applies to our region.

 

A flood insurance bill reauthorizing the National Flood Insurance Program (NFIP) for five years passed through the House on a 237-189 vote after months of debate. The bill makes alterations intended to introduce private market competition and to prohibit the government for offering insurance for homes that repeatedly flood. Senators are still negotiating terms of their own NFIP bill.

 

 

Longer Term

 

A map of broadband access from USDA’s Economic Research Service is telling and a handy tool for pushing for additional investment. The punch line: wired broadband remains below 60 percent in more than 800 rural counties, most of them poor or remote.

 

Happy Thanksgiving!