New Tax Code Could Stymie Senior Housing Development
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Senior housing financiers are scrambling to save funding for nonprofit senior housing before the new tax code passes. According to Senior Housing News, the House of Representatives' version of the GOP tax bill eliminates private activity bonds, important to nonprofit senior housing development, and the top senior housing developer Ziegler is on the move raising awareness and fighting the elimination of the PABs.
PABs are a critical source of funding for nonprofit continuing care retirement community developers, and should they be eliminated, the cost of capital for developers like Ziegler could increase by one-third.
“The trickle-down of this is really [that] it will very much stymie any typed of growth and reinvestment,” Ziegler Director of Senior Living Research and Development Lisa McCracken told Senior Housing News.