The National Low Income Housing Coalition characterized the lack of affordable rental housing as a national crisis for poor and middle class Americans of all ethnic groups, in cities as well as rural communities.
Ellison has sponsored a bill that would reduce the popular mortgage interest deduction, which benefits mostly high-income earners, and use the additional tax revenue to expand access to rental homes. Each year, he said, three-quarters of the $200 billion Congress spends on housing goes towards subsidizing the homes of the richest families through the mortgage interest deduction and other home-ownership tax benefits.
“For decades, politicians were told that the mortgage interest deduction was something you just couldn’t talk about. It was the so-called third rail, and if you messed with it, you were going to be electrocuted,” Ellison said. “I actually think we should be directing our housing expenditures to people who need it the most.”
This is the third time Ellison has proposed reducing the mortgage interest deduction. His previous attempts have all failed.
The One Month’s Rent Initiative thanks Tracy Jan and The Washington Post for this excellent article.