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Mortgage Interest Deduction

POLICY

Community Associations Institute (CAI) supports a vibrant real estate market and financially affordable and attractive communities. CAI also supports efforts that permit as many citizens as possible to utilize the mortgage interest deduction to make homeownership a reality. It is a tool that has worked to maintain property values and as an incentive to real estate sales. Allied organizations have joined with CAI to support the continuance of this policy.  Among them are the National Association of Home Builders, National Association of Realtors, the Mortgage Bankers Association and the Coalition for Sensible Housing Policy representing consumer and industry groups.


Background

  • The deduction for mortgage interest on owner-occupied homes is one of the largest individual income tax expenditures provided to households. The Office of Management and Budget estimates the mortgage interest deduction to be worth nearly $90 billion in fiscal year 2011.

  • Experts predict home values could fall 15% as buyers discount the value of the mortgage interest deduction in their purchase offers.

  • Research shows Americans still overwhelmingly consider homeownership a core value.  Efforts to weaken or eliminate the mortgage interest deduction undoubtedly would meet widespread and vocal opposition. Equally unpopular would be proposals to diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages.

RECOMMENDATION

Protecting the mortgage interest deduction promotes housing. In supporting it, we help ensure that tomorrow’s families can follow the same path to home ownership as those before them by having access to reasonable mortgage products. This incentive for home ownership effectively supports all those who qualify for and seek this status, ultimately resulting in healthier communities.

POSITION

CAI opposes any changes that would limit or undermine current law.

policy history

Approved by the Government & Public Affairs Committee, December 13, 2012

Adopted by the Board of Trustees, January 22, 2013 

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