Reps. Davis, Gomez, Peters, & Panetta Introduce Bill to Help Millions of Struggling Renters via Innovative Tax Credit

Reps. Davis, Gomez, Peters, & Panetta Introduce Bill to Help
Millions of Struggling Renters via Innovative Tax Credit

WASHINGTON, DC –Rep. Danny K. Davis (D-IL), Rep. Jimmy Gomez (D-CA),Rep. Scott Peters (D-CA), and Rep. Jimmy Panetta (DCA)
introduced innovative legislation to help millions of cost-burdened renters at a time when housing costs are skyrocketing as the gap
between incomes and housing costs grows. The Rent Relief Act creates a new tax credit for renters that would cover a percentage of the difference between 30 percent of their adjusted gross income and
the actual cost of rent and utilities, capping the benefit at 100% of Small Area Fair Market Rent. The bill makes the credit available to most working families by allowing the credit for families earning up to $100,000. Further, it delivers help when needed with monthly payments to pay bills when they are due, building on the successful advanced Child Tax Credit that helped tens of millions escape
poverty.

Stable housing is foundational for the social, emotional, and economic well-being of individuals and families. Nationally, 8 million of the
lowest-income renters spend at least half of their income on rent, leaving them little remaining to cover other basic needs for food, clothing, and health care. Despite the profound need, only 1 in 4 eligible households receives any help, and some households
spend years on waitlists due to inadequate funding. Creating
a new renters’ tax credit – along with expanding targeted
investments to increase supply – can help end America’s housing crisis.

“Every day thousands of people in Chicago struggle to pay rent,” said Rep. Davis. “The Rent Relief Act will help renters in a real, life-changing way so that they can better care for their families without fear of eviction or making the horrible choice between a roof over their heads or medicine and food for children. Direct grant assistance and affordable housing are essential, but only help a limited number of families. A renter’s credit could help every eligible taxpayer afford housing and improve their quality of life, working in concert with the other supports to help end America’s housing crisis.”

“As people struggle to recover from the pandemic and the cost of rent continues to rise, we need significant investments to ensure that
families and individuals with the lowest incomes can afford and stay in their homes,” stated Foluke Akanni, Housing Policy Organizer at Housing Action Illinois. “More resources will support cost-burdened
renters, prevent homelessness, and help stabilize our communities.”

The Rent Relief Act is supported by over two dozen housing, ability, and family advocates, including:

Autistic Self Advocacy Network;
Autistic Women & Nonbinary Network;
Center for Disability Rights;
Church World Service;
Coalition on Human Needs;
Community Change;
Epilepsy Foundation;
Funders Together to End Homelessness;
Housing Action Illinois;
Housing California;
Justice in Aging;
LeadingAge;
Liberation in a Generation;
Local Initiatives Support Corporation;
National Association for County Community and Economic Development;
National Association of Local Housing Finance Agencies;
National Center for Housing and Child Welfare;
National Coalition for Asian Pacific American Community Development;
National Health Care for the Homeless Council;
National Homelessness Law Center; National Housing Law
Project;
National Housing Trust;
National LGBTQ Task Force Action Fund;
National Low Income Housing Coalition;
National Neighbor Works Association;
National Network to End Domestic Violence;
National Women’s Law Center;
NETWORK Lobby for Catholic Social Justice;
the Opportunity Starts at Home Campaign; and
the Poverty & Race Research Action Council.

Latest Stories

Latest Podcast

STARR Community Services International, Inc.