Responding to the Challenges of Preserving Low-Income Housing Tax Credit Projects: Lessons From New York City

Abstract

The year 15 presents a critical moment for the preservation of Low-Income Housing Tax Credit (LIHTC) properties. While there have been studies looking into the year-15 challenges in weak housing markets, there has been little research on strategies and contexts that have led to successful preservation outcomes. While different localities may require different strategies depending on local contexts, there are common challenges shared by LIHTC properties due to the program structure. This paper aims to examine how New York City has been responding to some of these common challenges through its LIHTC (Year-15) Preservation Program which has been quite successful in preserving expiring LIHTC properties. Through a combination of data analysis on LIHTC and New York City’s Year-15 Program, interviews with government officials, and an examination of approximately 530 land documents of 107 expiring LIHTC properties in New York City, this study takes an in-depth look into the development process, strategies, and outcomes of the program. By doing so, future challenges and lessons are highlighted that are helpful for New York City and beyond.