Housing's $84m tax incentive.

In his first public speech as a new member of the Senate Finance Committee, Sen. Charles Schumer proposed two new tax incentives that will help create more affordable housing in New York and throughout the nation.

U.S. Sen. Schumer delivered the keynote address at the 31st Annual Awards Luncheon for the New York Housing Conference and National Housing Conference where several industry leaders were honored for their efforts in helping to create affordable housing for all Americans.

Schumer told the 1,400 professionals who attended the luncheon. "If we want to actually get something done to improve the housing market and prospects for millions of low income families, we [can't] just be satisfied with a good defense."

In his new seat on the Finance Committee, Schumer wants to form an offensive stance to solve affordable housing funding. "I am proposing that we bring this fight to the Administration's own playing field and that we focus on tax incentives rather than new spending to expand the number of affordable housing units," Schumer said.

"This has two advantages: First tax cuts are far more palatable to this Republican dominated Congress then spending programs are. Second, tax break programs garner greater support from both the real estate and financial communities and they can give us some of the clout we've been missing when we fight for affordable housing funds."

Schumer proposes doubling the Low Income Housing Tax Credit--from the FY 2005 level of $1.85 per capita to $3.70 in FY 2006. Under this expanded program developers in NY could get over $84 million to produce more than 8,000 affordable housing units next year--260,000 nationwide.

He also proposes an Exit Tax Relief, a proposal that would waive exit taxes for aging owners who sell their properties to buyers who agree to keep the properties affordable for no less than 30 years, which could result in saving 1 million units.

In the last few years, states and municipalities have had to deal with federal cuts to the Section 8 and Community Block Grant programs.

In May, Schumer introduced a bill to guarantee full funding of the Section 8 vouchers program--and 21 other Senators co-sponsored the bill. Fortunately, Administration reversed its policy and used current rental rates.

But he said more needs to done in Washington to assure the Section 8 program is fully funded every year.

"We need a permanent fix for Section 8 funding problems," he said. "While it is an expensive program--I am committed to figuring out a way to ensure the vouchers are funded at current rental levels."

Winner of the NYHC 2004 Lifetime Achievement Award John Zuccotti, chairman of Brookfield Properties and chairman of the Real Estate Board of New York, said a federal program needs to be enacted to provide for adequate housing for all Americans.

"Fundamentally, you cannot solve the housing problem of this county within the confines of the municipal or state government," said Zuccotti in his acceptance speech. "The single most important thing you can do in political terms is to work towards the restoration of a bipartisan goal, bipartisan recognition that the goal of the Housing Act of 1949 yet to be achieved ... should be our goal today and should be achieved within the next 50 years."

New York City Department of Housing Preservation and Development Shaun Donovan, introduced Schumer and agreed with Schumer and Zucotti.

"Federal funding is key to our efforts. Many cities around the country depend almost entirely on Federal funding for their efforts and we are lucky to have the kind of city commitment that we have," Donovan said. "This year, we face four to six percent cuts in our block programs and, quite frankly, next year looks even tougher. We have no better friend in this fight in Washington than Chuck Schumer. He has been a virtual tag team with the mayor."

The luncheon, held at the Sheraton New York Hotel and Towers, also honored Bank of America/ Banc of America Securities with the Public Investment Award; Washington Mutual with the Community Banking Award; and Harold DeRienzo, president of the Parodneck Foundation for Self-Help Housing and Community Development, with the Community Service Award.