The House Financial Services Committee on Monday will mark up legislation that would, among other things, provide $10 billion to the Community Development Financial Institutions program to build or preserve more than 170,000 “affordable” homes.
The proposal is contained in the committee’s section of the massive Democratic budget reconciliation proposal. Under that bill, the Financial Services Committee has more than $300 billion to fund housing programs.
The legislation “provides several investments that are targeted to address both the immediate problem of housing instability as well as more long-term needs of the nation’s affordable housing infrastructure.”
It includes $10 billion to provide competitive grants to CDFIs and non-profit developers to help leverage private sector investment.
The Financial Services Committee’s bill does not include a controversial proposal that would require banks and credit unions to report data to the Internal Revenue Service from accounts that have “gross flow thresholds” over $600.
The Financial Services Committee does not have jurisdiction over the IRS or tax policy. In the House, the Ways and Means Committee will decide whether to include that provision to help pay for Democratic spending proposals, including the CDFI measure. In the Senate, the Senate Finance Committee has jurisdiction over tax policy.
Neither committee has indicated its intentions yet. Financial services trade groups, including those representing credit unions, are vehemently opposed to the IRS proposal.