Low-Income Housing Tax Credit Developments and Neighborhood Change: A Case Study of Miami-Dade County

Abstract

This study examines the changes in neighborhoods hosting the Low-Income Housing Tax Credit (LIHTC) projects in Miami-Dade County between the 1990 and 2000 censuses. The study applies a cluster analysis to identify neighborhoods that are similar to LIHTC neighborhoods. It then compares changes in LIHTC neighborhoods with the median changes experienced by similar neighborhoods without the LIHTC in eight selected indicators. The study finds that over half of the LIHTC neighborhoods have experienced more positive changes than their control groups; however, the effects vary by neighborhood context. Black high-poverty neighborhoods receiving the LIHTC investment have experienced the most positive changes, while changes in middle-class neighborhoods have been the most negative. Further case studies show that LIHTC is successful at promoting neighborhood revitalization when it is strategically concentrated and part of cumulative efforts. These case studies, however, also raise concerns about the over-concentration of LIHTC units in vulnerable suburban neighborhoods.