Examining Strategies Housing Credit Agencies Adopted to Foster and Encourage Supportive Housing Development With the LIHTC
CSH has published its annual assessment of state LIHTC Qualified Allocation Plan (QAP) policies: 2017 Low Income Housing Tax Credit Policies Promoting Supportive Housing & Recommendations for the 2018 & 2019.
- This report examines the strategies Housing Credit agencies adopt to foster and encourage supportive housing development within their QAPs by harnessing the potential of the Low Income Housing Tax Credit (LIHTC).
- It also highlights significant national trends and changes made within QAPs. Full details and breakdowns in a state-by-state chart is available to download online in The Pipeline.
This new report builds on our assessment of 2016 Qualified Allocation Plan (QAP) policies. The report examines the strategies Housing Credit agencies adopted to foster and encourage supportive housing development within QAPs for the LIHTC (Housing Credit), highlighting significant national trends and changes made within QAPs.
Supportive housing – combining affordable housing with services to help people who face complex challenges live with stability, autonomy and dignity – is a proven, cost-effective way to end homelessness. By providing people who are chronically homeless or have other special needs with a way out of expensive emergency public services and back into their own homes and communities, supportive housing not only improves the lives of its residents but also generates significant public savings. Communities across the country have identified expanding availability of supportive housing as critical to their efforts to end homelessness.
This report represents one element of CSH’s ongoing efforts to analyze and share information regarding the role of federal Housing Credits in financing supportive housing development and addressing the need of special needs populations.
In this report, CSH identifies a variety of innovative Housing Credit policy approaches to supportive housing.
New Jersey’s credit allocation is $21,051,331. New Jersey sets aside 20% of supportive housing for projects allocated to senior projects. The state also sets aside 12.5% of annual authority for projects with 10 units or 25% of units for special needs housing. The state offers a 5% increase in the developer fee for supportive housing cycle projects.
The supportive housing focused scoring incentives in the supportive housing cycle are:
- 5 points to developments that require social service plans.
- 2 points for providing education or job training.
- 2 points for dedicating 100% of the units to permanent supportive housing.
- 2 points for evidence of rental assistance funding commitments for all special needs units.
- 2 points for integrated living opportunities.
- 5 points for exceeding the living standards of an SRO.
And In the regular cycle:
- 6 points to provision of social services.
- 3 points to projects that rent 5 units or 5% to homeless individuals or families.
- 2 points to projects that give preference to the PHA waiting list.
- 2 points to projects that rent 5 units or 5% to individuals or families who are disabled and leaving institutions under the Olmstead Decision.