The old 1970s and early 1980s MURB incentive program created an environment where investment in rental housing was somewhat of a tax benefit. Someone could invest, on a tax-deferred basis, any capital gains into new rental housing. It was pretty much a capital recycling program whereby capital that was made on the construction of new rental housing could be applied to another rental housing project on a tax-deferred basis. Any situation where tax is deferred or eliminated gives the opportunity for the industry to provide more rental housing at more affordable rates.
