The problem

• In 2003, the Bush administration proposed to eliminate taxes on corporate dividends. If enacted, the legislation would have seriously jeopardize the production of rental housing available to low-income, working families, as well as other community revitalization investments that Congress had approved or that were pending. Community development advocates feared that cutting taxes on corporate dividends would make the federal Low Income Housing Tax Credit, which helps created nearly 115,000 affordable rental homes annually, a far less attractive investment.

The strategy

• LISC’s Policy office launched a major informational outreach program, making direct appeals to congressmen to do what was necessary to protect the viability of the Low Income Housing Tax Credit.

The result

• Congress rejected the proposal and the tax credit remains a highly valuable and successful tool for the development of affordable housing nationwide.