Rethinking “Opportunity” in the Siting of Affordable Housing in California: Resident Perspectives on the Low-Income Housing Tax Credit

Abstract

ABSTRACTIn 2017, California revised its Qualified Allocation Plan to encourage more Low-Income Housing Tax Credit (LIHTC) development in high-opportunity neighborhoods, with the goal of improving residents’ economic mobility. However, very little research exists on LIHTC residents, their barriers to economic mobility, or their neighborhood preferences. In this article, I draw on qualitative surveys and interviews with residents living in 18 LIHTC developments across California to explore the linkages between housing affordability, neighborhood conditions, and access to educational and economic opportunity. Although largely exploratory, the research sheds light on the experiences of LIHTC residents and reveals both the benefits of affordable housing and the barriers households face to improving their economic circumstances. The findings problematize the idea of high-opportunity neighborhoods, revealing that residents’ barriers to opportunity are driven not necessarily by neighborhood factors but rather by the lack of a ladder in labor and housing markets. Further, residents’ own perceptions of desirable neighborhoods are significantly more nuanced than the opportunity maps—which will determine where California’s LIHTC investments go—can capture. The article discusses the policy implications of these findings, and calls for more research to specifically understand the linkages between LIHTC subsidy, neighborhood conditions, and access to opportunity for lower income households.