Last week, the House Ways and Means Committee unveiled its proposed tax bill, H.R.1, which, among other things, eliminates tax-exempt financing for not-for-profit organizations. It also eliminates the medical expense tax deduction for seniors living in communities like ours and for hundreds of thousands of others who are sick and in need of health care. Because of the severe and disruptive impact H.R.1 creates for not-for-profit senior living organizations, our staff and residents of Emerald Communities are strongly opposed to this radical proposal.
Eliminating the medical expense tax deduction for families and seniors who face significant health care expenses means they will have less to spend on necessary household, health care and essential daily living items.
Eliminating tax-exempt financing will severely restrict access to capital needed to develop senior living communities when aging baby boomers’ demand for health care and housing are increasing exponentially. Restricting access to capital will likely limit consumer choice for many in the senior living market as the development costs climb making this product unavailable to middle income markets. Low income seniors will also be harmed under H.R.1 if the 4 percent low-income housing tax credit is eliminated making it unattractive to investors to build affordable senior housing. Our homeless senior population will grow.
To protect families, seniors and promote choice and access to senior living and care delivery options, we urge Congress to:
• Maintain tax-exempt financings for 501(c)(3) organizations
• Maintain the exemption for multifamily housing bonds and the 4 percent low-income housing
• Maintain the medical expense deduction
• Maintain the charitable deduction
If H.R.1 were to pass, the impact would be detrimental to seniors and the not-for-profit senior living industry whose mission it is to serve them, as well as other charitable endeavors. To reach out to lawmakers to let your voice be heard, call (855) 837-6894.
Lisa A. Hardy
President and chief executive officer of Emerald Communities, which features Redmond’s Emerald Heights