HOUSING FOR
CALIFORNIA
Promote, Protect, and Preserve
Housing Affordability
As housing affordability faces increasing challenges, Congress is contemplating changes that could further hinder Californians’ ability to own homes.
Moreover, the issue of housing supply needs urgent attention. There is currently insufficient housing being built throughout the state to support the dream of homeownership.
It is essential that we safeguard the foundations that enable housing to be accessible in California.
It's time to prioritize affordable pathways to homeownership.
Save Main Street
While individuals have faced a $10,000 cap on State and Local Tax (SALT) deductions, businesses have generally been able to fully deduct these expenses as a cost of doing business.
The Issue
Now, Congress is weighing new limitations on business SALT deductions and potential changes could place tax burdens for companies, especially in high-tax states like California, and pose significant challenges for homebuilders, developers, and small business owners.
Why This Matters
Many homebuilders rely on being able to deduct local fees, property taxes, and permit costs. If the SALT deduction is limited for businesses, costs will rise and will lead to fewer affordable or entry-level homes being built.
Business SALT deductions could directly undercut California’s push to solve its housing affordability crisis and make homeownership less attainable for
working families.
Protect Municipal Bonds
Congress is considering proposals to eliminate the federal tax exemption for municipal bond interest. This exemption has allowed state and local governments to issue bonds with lower interest rates, facilitating affordable financing for public projects, including housing and infrastructure.
The Issue
Municipal bonds fund the roads, water systems, and infrastructure that make homebuilding and community growth possible. These bonds have been tax-free for decades to keep costs low and projects moving. Now, some in Washington want to change that.
Why This Matters
Eliminating the tax exemption could lead to higher interest rates on these bonds, increasing the cost of public projects and homebuilding efforts which will exacerbate the state's housing affordability crisis. This will make it more challenging for Californians to achieve homeownership.
Save the Mortgage Interest Deduction
The Mortgage Interest Deduction (MID) is in jeopardy, and many policymakers are working to lower it from $750,000 to $500,000. MID makes buying a home more affordable, strengthens our local communities, and fuels our economy.
The Issue
Some in Congress are considering changes to the MID — one of the most important tools that makes homeownership more affordable. Weakening or eliminating the MID would increase costs for millions of homeowners and make it even harder for future generations to buy a home.
Why This Matters
The stakes are high. If MID is further compromised, many people's dreams of homeownership will slip further away. In fact, 60% of Californians stand to benefit from mortgage interest deductions, with any home purchased for over $550,000 at risk. States like California, with a higher average home price, will be hit especially hard.