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HomeMy WebLinkAboutR-81-0172�, n .—I Gi RESOLUTION NO. 1 `°' A RESOLUTION SUPPORTING RESTORATION OF !�''�; �- FEDERAL TAX BENEFITS TO RENTAL HOUSING ` ; �" �� ' `_' �" PRODUCERS AND OWNERS; FURTHER DIRECTING THE CITY CLERK TO FORWARD COPIES OF THIS RESOLUTION TO THE MEMBERS OF THE FLORIDA CONGRESSIONAL DELEGATION. V WHEREAS, the City Commission has determined there exists a critical shortage of rental housing in the City affordable by low and moderate income families; and [dHEREAS, the City Commission has determined the ameliora- tion of this rental housing shortage to be of great importance to the stability of the City; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. It is hereby urged that tax benefits to pro- ducers of rental apartments removed by Congress through the Tax Reform Act of 1976 be restored. Section 2. The Florida's Congressional Delegation is hereby urged to support restoration of tax benefits to producers and owners of rental property. Section 3. The City Clerk is hereby directed to forward copies of the herein Resolution to all members of the Florida Congressional Delegation. PASSED AND ADOPTED this 17 day of__ MARCH , 1981. MAURICE A. FERRE AT T: MAURICE A. FERRE, MAYOR 71 RALPR-G. ONGIE, CITY CTZRK 1 PREP RE D AP ROVED BY: APPROVED AS TO FORM AND CORRECTNESS: VA A. VALENTINE ROBERT F. CLARK ASTANT CITY ATTORNEY ACTING CITY ATTORNEY S UM r-%,---� � - r-r- 11, r - co, "'M41ISSION NG OF "DnCU1%,EINT INDEX _ I T E 1'J1 N 0. 15 �:......................,..... 17 + V Richard L. Fosmoen March 6, 1981 = _ City Manager Dena Spillman, Director Department of Community Development Resolution - Restoration of Federal Tax Benefits To Rental Housing Producers And Owners City Commission Agenda Item It is recommended that the City Commission approve a resolution supporting the restor- ation of tax incentives similar to those removed from the federal tax code through the Tax Reform Law of 1976 as a measure to provide a suitable economic environment for the development of rental housing affordable to low and moderate income families. Among other things, the Federal Tax Reform Law of 1976 eliminated certain tax incentives to rental housing entrepreneurs. In the opinion of most housing developers and organizations involved with rental housing produc- tion, elimination of these tax advantages served as a further disincentive to the production of rental housing. The most important of these tax amendments was a provision for "writing off" construction interest over an extended period of time (5 years) rather than during the actual con- struction period, allowing less of an immediate "loss" on the investment. Other modifiactions to federal tax law modifications included increases in capital gains taxes for residential developments and modifications to preference tax items. The attached resolution endorses restoration of these tax incentives in some form by the federal government and requests support for this position by Florida's congressmen and senators. Adoption of the resolution is recommended. /rJ f a Enclosure