National and local leaders in and out of New York continue to applaud Ways and Means Chairman Congressman Charles Rangel for the tax provisions that he crafted into the nation's news housing law. The newly signed legislation will help finance more affordable housing units, extend more tax credits for first-time homebuyers & provide other measures to strengthen housing market & stem tide of foreclosures.

Below is a cross-section of those reactions:

"Because of the Foreclosure Prevention Act of 2008, at-risk borrowers will be able to keep their homes by refinancing their mortgages into safe and more affordable government-insured mortgages. The measure also provides funds to New York State and its localities to purchase and renovate foreclosed properties in our most impacted areas. This initiative will help New York stabilize at-risk communities endangered by abandoned foreclosed homes....I want to thank Senator Charles Schumer and Ways and Means Chairman Charles Rangel and the entire New York delegation for their leadership on this issue and their hard work in making this bill a reality.

New York State Governor David Paterson

“This landmark legislation provides a wide ranging set of tools to address the foreclosure crisis in New York City and cities across the country. Congressman Rangel’s leadership was central to producing a bill that will keep people in their homes, stabilize neighborhoods impacted by foreclosures, and preserve and expand our supply of affordable housing. New York City has learned from firsthand experience that rehabilitating distressed properties can stabilize entire neighborhoods. The neighborhood stabilization grants included in this bill will bolster efforts underway to turn around the New York City neighborhoods most hurt by foreclosures. The bill also makes changes to tax credit programs that will allow cities to make more effective use of the low-income housing tax credit and housing bonds. These changes and the inclusion of an additional $11 billion in tax-exempt bond authority will result in thousands of additional affordable housing units being built across the City.”

Commissioner Sean Donovan
New York City Department of Housing Preservation & Development

"This is a tremendously significant piece of legislation. Not only will it bring help to homeowners at risk of foreclosure, and to communities hard-hit by the crisis, it will also expand the tools and resources available to develop affordable rental housing, by making tax credit investment more attractive and expanding tax-exempt mortgage bonding authority. It also creates, in the Housing Trust Fund, the first new federal housing production program in a generation. LISC looks forward to working with government and local partners to implement the solutions and programs contained in this bill."

Denise Scott
Managing Director
Local Initiatives Support Organization (LISC)
New York City

"Passage of the Affordable Housing Trust Fund represents a re-invigorated commitment by Congress to affordable housing- both in terms of preservation and new construction. It is critical that this commitment be paired with companion policy initiatives that ensure the Fund will be used in a way that serves families most in need of decent, safe and affordable housing."

Dina Levy
Director of Organizing and Policy
Urban Housing Assistance Board

"The National Housing Trust Fund provisions of this bill will provide tenants and their allies with a vital new resource to preserve rapidly depleting affordable housing to ensure that New York's neighborhoods are stable, diverse communities with affordable housing for all - not only for the wealthy. Recognizing that construction of new housing alone cannot solve the housing crisis, Congress took the right step to allocate funds to preserve existing affordable housing."

Patrick Coleman
Tenants & Neighbors

“House Ways and Means Committee Chairman Charles Rangel has once again demonstrated his deep commitment to providing affordable housing help to those who need it most. Because of the Chairman’s leadership, the housing stimulus legislation signed into law significantly expands and strengthens two of the most effective federal housing programs—the Low Income Housing Tax Credit and tax-exempt Housing Bonds—and the ability of State Housing Finance Agencies to put these resources to work on some of the toughest affordable housing challenges our country has ever faced.”

Barbara J. Thompson
Executive Director
National Council of State Housing Finance Agencies

"This new legislation will not only help the home owners recover but will put into place a system for the preservation of affordable and public housing in the United States."

Reginald H. Bowman
President
City Wide Council of Presidents New York City Housing Authority

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Measure Would Help Finance More Affordable Housing Units In NYC, Extend More Tax Credits For First-Time Homebuyers & Provide Other Measures To Strengthen Housing Market & Stem Tide Of Foreclosures

Congressman Charles Rangel joined local and national leaders in hailing Tuesday's signing of The American Housing Rescue and Foreclosure Prevention Act into law, saying that it will go along way in addressing the shortage of affordable housing options in cities and towns in New York and across the United States.

This is the right thing to do for our country during this economic downturn,” said Rangel. "This law expands and improves the low-income housing tax credit, which is the largest source of federal support for the construction and rehabilitation of affordable housing. It also increases volume limits on housing bonds to finance low-income rental housing and first-time homebuyers, while also providing states with greater flexibility on how to use those bonds efficiently."

Rangel, Chairman of the House Ways and Means Committee and a longtime advocate for improved access to low-income housing, has helped lead the charge in Congress to respond to the current housing crisis.

“House Ways and Means Committee Chairman Charles Rangel has once again demonstrated his deep commitment to providing affordable housing help to those who need it most," said Barbara J. Thompson, executive director, National Council of State Housing Finance Agencies. "Because of the Chairman’s leadership, the housing stimulus legislation signed into law significantly expands and strengthens two of the most effective federal housing programs—the Low Income Housing Tax Credit and tax-exempt Housing Bonds—and the ability of State Housing Finance Agencies to put these resources to work on some of the toughest affordable housing challenges our country has ever faced.”

Denise Scott, Managing Director of the New York City branch of national community development organization Local Initiatives Support Organization, said that the organization looked forward to working with government and local partners to implement the solutions and programs contained in this bill.

"This is a tremendously significant piece of legislation," said Scott. "Not only will it bring help to homeowners at risk of foreclosure, and to communities hard-hit by the crisis, it will also expand the tools and resources available to develop affordable rental housing, by making tax credit investment more attractive and expanding tax-exempt mortgage bonding authority.  It also creates, in the Housing Trust Fund, the first new federal housing production program in a generation. "

STATE & CITY BENEFITS

Locally, the bill promises to create thousands of affordable housing units in New York state. It provides a ten percent increase in the credits allocated among states, and an $11 billion increase in tax-exempt bond authority to support single family and rental housing. Also included in the package is a provision to enable cities and towns to more efficiently use tax-exempt bonds in the effort to develop affordable rental housing, a move that will enable New York City to issue significantly more bonds so that it can support the development of thousands more rental units for low-and moderate-income families.

As a result, as many 10,000 affordable housing units are estimated to be built across the state, with at least half located within New York City. Housing advocates agree these changes will result in additional units of housing and, especially, more units for lower-income families.

"The National Housing Trust Fund provisions of this bill will provide tenants and their allies with a vital new resource to preserve rapidly depleting affordable housing to ensure that New York's neighborhoods are stable, diverse communities with affordable housing for all - not only for the wealthy," said Patrick Coleman of the city advocacy group Tenants & Neighbors. "Recognizing that construction of new housing alone cannot solve the housing crisis, Congress took the right step to allocate funds to preserve existing affordable housing."

Priscilla Almodovar, President and Chief Executive Officer of the New York State Housing Finance Agency, agreed.

“I congratulate Congressman Rangel and the rest of the New York delegation for championing the housing needs of working families in our state," said Almodovar. "With this Act, New York gets the additional tools it needs to address the backlog of affordable rental units that needs financing and the increased demand for low interest-rate mortgages from first-time homebuyers. The Act is also crucial to our efforts to stabilize endangered neighborhoods across New York by providing millions of dollars to buy and renovate foreclosed homes."

"Passage of the Affordable Housing Trust Fund represents a re-invigorated commitment by Congress to affordable housing- both in terms of preservation and new construction," said Urban Homesteading Assistance Board (UHAB) Organizing and Policy Director Dina Levy. "It is critical that this commitment be paired with companion policy initiatives that ensure the Fund will be used in a way that serves families most in need of decent, safe and affordable housing."

The Affordable Housing Tax Credit Coalition (AHTCC), a trade group representing many of the public and private sector participants in the affordable housing tax credit industry, also praised Rangel's leadership in getting what they termed as critically important improvements to the federal Low-Income Housing Tax Credit (LIHTC). Over 2 million rental units across the nation have been developed through the LIHTC since the Rangel-sponsored measure was passed in1986.

"The housing tax credit is the single most important federal program supporting the development and preservation of affordable rental housing, the need for which continues to grow," said AHTCC Counsel Richard Goldstein. "Mr. Rangel has long been the champion of this very successful public-private partnership program and he understands how important this housing is for the people of his district, state and for the Nation as a whole.  We commend him for his efforts, understanding and vision in helping to make affordable rental housing a reality for millions of low-income people."

LAW STRENGTHENS BOTH RENTAL HOUSING & HOME OWNERSHIP

House Speaker Nancy Pelosi thanked Rangel and other Congressional members for assembling the bipartisan coalition that created a comprehensive package of measures aimed at stemming the tide of foreclosures, stabilizing local housing markets, providing incentives for first-time homebuyer and increasing access to affordable housing for low-income communities.

“This bill would not have happened without the outstanding leadership of the principal House authors, Chairman Barney Frank and Chairman Charles Rangel, as well as the strong efforts of Congresswoman Maxine Waters, who ensured that communities across America will receive funds to restore neighborhoods and prevent further declines in home values," said House Speaker Nancy Pelosi. "I also want to thank Treasury Secretary Henry Paulson, who worked closely with Democrats in Congress to pass this legislation and ensured that the President would sign it into law.

“Homeownership is an essential part of the American Dream," continued Pelosi. "By expanding homeownership opportunities and protecting families against foreclosure, we are helping keep the American Dream alive. By restoring confidence in the housing market, our economy can begin to grow and create jobs for the American people again.”

Overall, The American Housing Rescue and Foreclosure Prevention Act will allow hard-working American families in danger of losing their home to refinance into lower-cost government -insured mortgages they can afford to repay – at no cost to the American taxpayer. The legislation also:

Rangel solicited the advice of a variety of local city housing leaders in crafting the tax provisions of the bill, including NYC Housing Preservation and Development Commissioner Sean Donovan and NYS Division of Housing and Community Renewal Commissioner Deborah Van Amerongen.

Those provisions include:

• First-time homebuyer tax credit to assist in making a down payment on a home - This would provide individuals and families with a refundable credit (equivalent to an interest-free loan) of ten percent of the purchase price of their home (up to $7,500). Taxpayers would be required to repay any amount received under this provision to the government over 15 years in equal installments. The credit is phased out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return).
  

• Additional standard deduction for real property taxes to help homeowners who claim the standard deduction by allowing them to claim an additional standard deduction of up to $500 ($1,000 for joint filers) for State and local real property taxes. This provision applies for tax year 2008. 
   

• Temporary increase in low-income housing tax credit and simplification of the credit -  The bill would increase the current limit of the credit from $2.00 for each person residing in a state by an additional ten percent. This will help put builders to work to create new options for families seeking affordable housing alternatives. The credit will also be simplified to improve its effectiveness. 
  

• Temporary increase in mortgage revenue bonds -  The bill would also allow for the issuance of an additional $11 billion of tax-exempt bonds to refinance sub-prime loans, provide loans to first-time homebuyers and to finance the construction of low-income rental housing.

“Of the problems that were created by the reckless deregulation that led to the subprime crisis and the neglect of affordable housing that has marked Republican rule in Congress, this package of measures is the best response we could make.  It cannot solve all of these deep rooted problems immediately but the bill does represent a mutually reinforcing set of approaches that will begin to diminish the problem,” said House Financial Services Committee Chairman Barney Frank (D-MA).  “This will begin to lay the groundwork for a turnaround in the housing market and hopefully in the broader economy as well.” 

Black Dancer and Activist Popularized African and Caribbean Dance.

Under the stewardship of Congressman Rangel, the House Wednesday passed a resolution honoring the late Katherine Dunham – a premier African-American dancer, choreographer, and civil rights activist whose incorporation of Black dance and ritual revolutionized the art form. She died at 96 in New York.

"Dunham merits official recognition in the records of Congress for her enduring achievements, but most of all, for her love of humanity," Rangel said.

From her stint on Broadway to her trailblazing work at the Metropolitan Opera, she left a memorable mark on the New York consciousness. She boasted a series of firsts: founding one of the nation's first Black ballet companies and serving as the first Black choreographer at the Met.

But she was endeared to many on account of her strong social conscience. She refused to perform in segregated theatres, dedicated much of her life to bringing art to underserved youth and adults in impoverished areas, and underwent a 47-day hunger strike to highlight the plight of Haitians on the island.

At a time when minstrel shows and blackface were prevalent and popular, she introduced African and Caribbean influences into the European-dominated world of dance. It is that courage – and pure talent – that this successful resolution is meant to celebrate.

"Katherine Dunham was an inspiring American whose grace, smarts, and grit reminds us that there are no limits on what we can accomplish," Rangel said. "Her story is not only a point of pride for African Americans, but for all Americans, because it serves as testament to the great opportunity this great country affords its people.

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New Law Will Help Ensure Millions of Seniors, Military Families Have Access to Quality Health Care

Members of Congress, led by Ways and Means Committee Chairman Charles B. Rangel (D-NY), voted Tuesday to override President Bush’s veto of H.R. 6331, the Medicare Improvements for Patients and Providers Act of 2008.

An overwhelming, bipartisan majority of the House voted 383-41 to pass the bill and ensure that millions of seniors, military families and other beneficiaries would continue to receive the healthcare they need and deserve. The Senate soon followed with its own 70-26 vote ensuring that the measure would become law.

In remarks made on the House floor, Rangel thanked his colleagues for blocking the President's action and for making healthcare a top priority.

“President Bush demonstrated once again, a reckless, mean-spirited disregard for the health of our children, military families, our poor folks and our aged," said Rangel on the floor of the House. "This vote really isn’t a question of Republicans or Democrats supporting a bill. Instead, we are uniting the Congress to send a message to the President that he should think about what this bill would do for the American people. We wish he would be a partner, not a roadblock, to progress."

“When Senator Ted Kennedy rose from his sick-bed to cast his critical vote in favor of this bill last week, he wasn’t just a Democratic Senator speaking to the Senate, he was a man who demonstrated and embodied compassion for all of the things we believe in," continued Rangel. "He brought this Congress together and we must stay together, for the good of the American people.”

H.R. 6331 will prevent a 10.6 percent pay cut to physicians which was scheduled to take place on July 1, ensuring continued access to their physician for the over 1 million Medicare beneficiaries living in New York City. The bill will provide a 1.1 percent update in physician payments starting January 1, 2009. The law also includes important improvements for beneficiaries, such as Medicare mental health parity, improved preventive coverage, and enhanced low-income assistance. In addition, it provides measures to ensure prompt insurance payment to pharmacies for prescription drugs, and a delay of a Medicaid regulation that will result in lower generic drug reimbursement to pharmacies. It also includes an 18-month delay in implementation of the flawed competitive bidding program for more than 1,300 Durable Medical Equipment suppliers in the New York City area, and tens of thousands more in the other 79 metro areas covered by the bidding program.

The measure will also reduce Medicare Advantage Indirect Medical Education (IME) overpayments and make changes to the private fee for service program that impact network requirements, not payment levels. In addition, these efforts to rein in Medicare Advantage extends Medicare solvency.

H.R. 6331 first passed the House on June 24th by an overwhelming vote of 355-59. It soon passed the Senate 69-30 on July 9.

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Congressman Joins with Local Elected Leaders and Business Leaders to Encourage Employers to Use the Federal Work Opportunity Tax Credit to Hire Young People Ages 16 -24.

Although summer has already started, Congressman Charles Rangel is encouraging employers to use the federal Work Opportunity Tax Credit to hire young people not just for the summer, but also throughout the entire year.

The tax credit for businesses helps provide employers with a one-time federal credit for each newly hired, eligible youth ages 16-17, now through September 15 and for young adults 18 through 24 for the first year.

"This is not just an opportunity to fill an employment need, but also a chance to provide young people with an experience that can propel them to greater success. That is why the Work Opportunity Tax Credit is so important," said Rangel. Employers are given a valuable resource to fill needed summer and part-time positions while our youth are provided with productive activities that help keep them out of trouble and enhance their credentials for entering the job market."

Congressman Rangel joins with local elected officials, business and community leaders to urges employers to use federal tax credits to hire summer youth. Photo Credit: Wyzmenn Media Group

The press conference took place on Tuesday, July 8 after a 10 a.m. groundbreaking for Candace House, an alternative incarceration residence for women run by the Greenhope Services for Women. (http://www.greenhope.org/)

BUILDING A COALITION FOR OUR YOUTH

Rangel, Chairman of the powerful Ways and Means Committee, was joined at a East Harlem Press Conference Tuesday July 8 by New York State Department of Labor Executive Deputy Commissioner Mario Musolino, New York City Department of Youth and Community Development Commissioner (DYCD) Jeanne B. Mullgrav, Partnership for NYC President and CEO Kathryn Wylde.

Also in attendance was a host of elected and community leaders including New York City Council members Inez Dickens and Melissa Mark-Viverito, NYS Assemblyman Keith Wright and Adam Clayton Powell IV, NYS Senators Bill Perkins and Jose Serrano, Upper Manhattan Empowerment Zone CEO Kenneth Knuckles and Greater Harlem Chamber of Commerce President and CEO Lloyd Williams.

Musolino, representing NYS Department of Labor Commissioner Patricia Smith, thanked the Congressman for his efforts in getting not just the WOTC passed but also extending the unemployment benefits for thousands of New Yorkers. Together, both measures provide an opportunities for growth that will not only impact a person's life, but also strengthen our economy.

"In today’s uncertain economic times, employers need to take advantage of every incentive to enhance their competitiveness, and Work Opportunity Tax Credits may save them a considerable amount of money," said Commissioner Smith. "These tax credits also encourage employers to hire young people, who face an unusually tough job market in this economic climate."

Speakers stressed the importance of having teems unemployed, with Commissioner Mullgrav pointing out studies that show that teens who work in high school are much more likely to remain in school, have lower pregnancy rates and on average earn significantly higher wages throughout their lifetime.

It is an opportunity that an increasing number of teens want to have. According to Mullgrav, there was a 10 percent jump in applications to the city's Summer Youth Employment program in 2008. However, although 103,000 applicants applied, only 42,000 were able to receive jobs.

"We know that a tough economy hits teens especially hard. The Work Opportunity Tax Credit provides employers with a financial incentive to hire young people and take advantage of their energy and fresh ideas," said Mullgrav. "Working together, the public and private sectors can start our young people on the path to academic achievement and success in an increasingly competitive job market."

The coalition of community and business leaders wanted to get the word out about the WOTC because it is still largely underutilized across the city and state. While over 25,000 eligible youth live in Upper Manhattan, only 479 businesses have used the credit over the last two years.

"The city's talent pool is its most important asset for business," said the Partnership for NYC President and CEO Kathryn Wylde. "Early job experience through summer jobs is a critical factor in building that talent pool and assuring that New York remains strong and competitive. Federal tax credits make summer jobs for NYC youth a great business investment.

Williams thanked Congressman Rangel for being the driving force behind the initiative and said that the Greater Harlem Chamber of Commerce would work with the Upper Manhattan Empowerment Zone and local community boards to increase outreach to small businesses in the area.

"The economy of today is forcing adults and seniors compete for jobs and our youth are losing out because they don't have the work experience. The tough economic conditions make it more difficult for our small businesses to bring new persons into the workplace," said Williams. "This initiative and the WOTC will go along way in expanding employment opportunities while enabling our small businesses to hire locally. "

Robert Walsh, Commissioner of the New York City Department of Small Business Services, agreed.

"These tax credits are not only a good value for businesses across the five boroughs; they also ensure that young adults will have opportunities to enter high-growth careers," said Walsh. "I strongly encourage businesses to take advantage of this program.”

Council Member Dickens applauded the initiative to urge businesses to take advantage of the federal tax credit program.

"It is especially important for the small business community to take advantage of this opportunity to employ our young people,” said Dickens. “Small businesses will allow our young people to be a part of the economic vitality of neighborhoods. Employment will help keep our young safe and teach them skills upon which they can build a productive future."

West Manhattan Chamber of Commerce President Andrew Albert agreed.

"The West Manhattan Chamber of Commerce supports Congressman Rangel's initiative to get businesses to use tax credits to hire our City's large youth population," said Albert. "It's good business to put as many as possible of these hard-working young people in jobs this summer."

Employers can learn more about the WOTC program by calling the New York State Department of Labor toll-free at 1-800-HIRE-992, or by visiting the Business Services section of the agency’s web site at http://www.labor.ny.gov. Employers can check whether the residence of a prospective employee is within a designated community or zone by using the address locator available from the U.S. Department of Housing and Urban Development at http://egis.hud.gov.

Residents interested in more information on the city's Summer Youth Employment Program can visit http://www.nyc.gov/html/dycd/html/jobs/summer_youth_employment.shtml. To find out more information on DYCD-funded Jobs and Internships, they can visit http://www.nyc.gov/html/dycd/html/jobs/jobs_internships.shtml

WOTC BASICS

To qualify for the WOTC, employers must hire young people who live in a designated Federal Renewal Communities and/or Empowerment Zones. The youth must be employed a minimum of 120 hours, part-time or full time.

The amount of the credit is based upon the total number of hours the youth is employed. If employment is between 120 and 400 hours, the maximum credit is 25% of the first $3,000 in wages, or up to $750. If employment is 400 hours or more, the maximum credit increases to 40% of the first $3,000 in wages, or up to $1,200. The average credit is roughly $500 per WOTC employee.

The credit also provides a one-time federal credit for each newly-hired, eligible youth ages 18 through 24. The youth must be employed a minimum of 120 hours for the first 12 months. (If employment is between 120 and 400 hours, the maximum credit is 25% of the first $6,000 in wages, or up to $1,500. If employment is 400 hours or more, the maximum credit increases to 40% of the first $6,000 in wages, or up to $2,400).

Local legislators and business groups see the initiative as a way of providing stability, both on an individual and a community level.

"So much of community renewal is dependent on jobs," said Senator Serrano. "The ability to provide a sustainable source of income goes a long way toward improving public health, reducing crime, and ensuring that long-standing residents and their children can afford to live where they grew up."

"This is a way of helping to get our children get on stable ground as they go on to college and their future careers," said Assemblyman Keith L.T. Wright, Chair of the New York State Assembly Social Services Committee. "Work experience is perhaps the most valuable asset we can provide our kids with and I thank Chairman Rangel for helping to provide this invaluable program to the families and young adults of the Village of Harlem and Upper Manhattan."

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