Balancing Priorities: Preservation and Neighborhood Opportunity in the Low-Income Housing Tax Credit Program
On October 17, the National Low Income Housing Coalition (NLIHC) and the Public and Assisted Housing Research Corporation (PAHRC) released a new report, Balancing Priorities: Preservation and Neighborhood Opportunity in the Low-Income Housing Tax Credit Program Beyond Year 30.
- The Low-Income Housing Tax Credit (LIHTC) is the largest national affordable housing program in the U.S.
- The LIHTC has contributed nearly three million rental homes to the affordable housing stock since its establishment in 1986.
- By 2030, nearly half a million current LIHTC homes will reach the end of their federally mandated rent-affordability and income restrictions. Some of these homes will be lost from the affordable housing supply as they convert to market-rate rents.
- Others may be lost to physical deterioration unless new capital investments are made available for rehabilitation and renovation.
This report sheds light on these preservation challenges with an examination of the neighborhood characteristics of current LIHTC units. The report explores how scarce resources for affordable housing lead to the dilemma between preserving affordable homes and promoting mobility for low income families to move to higher-opportunity neighborhoods. The report addresses this dilemma by offering a broader vision for a housing safety net.
The report makes the case for the need for sufficient funding for universal access to Housing Choice Vouchers, reforms to the allocation of tax credits in the LIHTC program, and the expansion of funding for the national Housing Trust Fund (HTF) and Public Housing.
According to the ACTION Campaign, over the time period of 1986 to 2016, the LIHTC has benefited New Jersey’s families and economy. During this time:
- 56,175 homes were developed or preserved, and
- 130,887 low-income households were provided affordable homes.
The report is based on data from the National Housing Preservation Database (NHPD) and other sources.
- The NHPD, maintained by NLIHC and PAHRC, is a national database of all federally assisted rental housing in the U.S., which includes properties subsidized through the U.S. Dept. of Housing and Urban Development (HUD) and LIHTC.
- The NHPD gives stakeholders information on when and where affordability restrictions will expire.
- Click here to learn more about the database.
The ACTION Campaign is the coalition of over 2,200 national, state, and local organizations and businesses working to address our nation’s severe shortage of affordable rental housing by protecting, expanding and strengthening the Low-Income Housing Tax Credit.