Trump corporate tax cuts could cost CA affordable housing 250M

President Trump’s proposed corporate tax cut from 21% to 15% could result in a $250 million loss for California's affordable housing sector, according to the California Housing Partnership. The organization notes that a 5% reduction in Low Income Housing Tax Credits would arise as corporations become less interested in purchasing these credits when their tax liabilities decrease. This loss could significantly hinder affordable housing production in cities like San Francisco, which has 30 projects in the pipeline that may face funding challenges. Historically, a similar tax cut during Trump's first term resulted in billions lost for affordable housing developers. City officials, aware of the implications, highlight that the city is already facing an $818 million budget deficit, limiting available funds for housing.

The Mayor’s Office of Housing and Community Development is closely monitoring the situation, aiming to assess potential impacts on local housing initiatives. With limited financial resources, the city may struggle to fill the gap left by reduced tax credits. As the tax code is expected to be revised this year, the stakes for affordable housing funding remain high.