August 7, 2012 – (RealEstateRama) — Congressman Keith Ellison (D-MN) is expected to introduce the Housing Subsidy Fairness Act in early September. This bill would provide dedicated funding for the National Housing Trust Fund with savings generated by reform of the mortgage interest deduction.
Mr. Ellison’s bill closely follows the reform proposal developed by NLIHC, which would lower the cap from $1million to $500,000 on the amount of mortgage debt for which the homeowner can take a deduction on the interest paid. It would also convert the deduction to a non-refundable tax credit, making it available to all homeowners with mortgages, not just those with enough income to itemize. The bill would phase in these changes over a five-year period.