Stop the Squabbling

Federal low-income-housing tax credits account for the largest public source of money for new affordable housing. The tax breaks, used primarily by corporations to reduce tax bills, are expected to generate enough investment to build 100,000 units of low-rent housing this year, if Congress keeps the credits alive. But the law that created the tax credits expires at the end of the year, so Congress must act quickly.

Under most circumstances, extension would be a snap. Housing tax credits enjoy strong bipartisan support. President Bush endorses the tax break, and no longer links his approval to his plan to cut the capital gains tax. Housing Secretary Jack Kemp vigorously supports the credits.

But Congress still has found something to fight about. Republicans, led by John Danforth of Missouri in the Senate, are pushing for a six-month extension. Democrats, led by Senate Majority Leader George Mitchell of Maine and Rep. Charles Rangel of New York, support a yearlong extension. The Democrats are right, in principle. The longer the extension the better for poor and homeless people. But a proposal left on the table when Congress recesses will accomplish nothing.

Republicans and Democrats are also at odds over what bill to use as a vehicle for the tax-credit extension. At stake is which party will get credit for saving low-income housing. The political squabbling ought to be replaced by a vigorous debate over how to house poor and homeless Americans.

The expiration of tax credits, which were established by the Tax Reform Act of 1986, would threaten half of the 5,000 affordable housing units planned for this year in Los Angeles. The loss of tax credits would shelve plans for 10,000 apartments in New York, and $50 million would be returned to investors.

As Congress squabbles, poor families are paying more than half their incomes to rent overcrowded, unsafe or squalid housing. Homeless men and women have few decent options. As time runs out, a quick compromise is in order.