Apr 24, 2008

Giving thanks and spreading the good will

Guest Opinion

By Duane Bay Jr.

Like most of San Mateo County's more than 160,000 homeowners, my wife and I claim a tax deduction for home mortgage interest. On the returns we just filed for 2007, it reduced our total tax by $2,067. What many homeowners may not realize is the mortgage tax deduction is a form of publicly financed housing assistance.

In San Mateo County alone, the total tax relief - the subsidy for homeowners - totals more than $300 million annually. When most people think of housing assistance, they think of Section 8, public housing complexes or motel vouchers.

However, the home mortgage subsidy accounts for about 75 percent of all federal and state subsidy funds coming into the county annually to make homes more affordable.

How this housing subsidy is used is up to each recipient. So this year, because my family's housing situation is just fine, we're donating 10 percent of our housing assistance to the Housing Endowment and Regional Trust, the countywide housing trust fund.

HEART raises money to address critical housing needs. HEART is a public/private partnership. San Mateo County's towns, cities and the county itself, carry all administrative costs so that all contributions go directly to the program.

In the Jewish tradition, a popular Passover song recites many blessings, and after each, the refrain "dayenu" - literally "that would have been enough." I have many blessings as a homeowner.

I do not have to fear eviction if the landlord decides to sell or even demolish my house. My housing costs are fairly predictable and increase more slowly than inflation. As a homeowner for 33 years, my property value has appreciated steadily at an average annual rate of more than 7 percent, doubling every 10 years or so. Relative to renting, any one of these blessings would have been enough. Yet in addition we get federal and state housing assistance in the form of mortgage interest tax deductions.

In keeping with many faith traditions, we will make an "affordable homes tithe" by donating 10 percent of our housing subsidy, about $200, to HEART. We will consider increasing that percentage next year, and we invite more households to join us.

To calculate your housing subsidy, you (or your tax preparer) can just change the home mortgage interest line on Schedule A to zero, and see how much your tax payment goes up (or refund goes down). To tithe, take 10 percent of that. To direct a portion of your housing subsidy to families whose housing situation is more tenuous, go to HEART's Web site at www.heartofsanmateocounty.org and click "Donate Now." By the way, your contribution will be tax-deductible.



Duane Bay Jr. is housing director for San Mateo County.