The Low Income Housing Tax Credit and Inner-City Revitalization

Abstract

Inner-city revitalization is a complex challenge requiring multiple strategies for success. Successful revitalization efforts must include quality housing opportunities for lower-income households. The federal Low Income Housing Tax Credit (LIHTC) program, established as part of the Tax Reform Act of 1986, is a policy tool that has the potential to contribute to inner-city revitalization. Program implementation is very complex, however, and many community-based organizations may be unable to participate due to lack of capacity. This article examined the structure of the LIHTC program and the extent to which it has been a part of inner-city revitalization efforts since the program’s inception. It also explored the implications of the LIHTC’s structure for continuing to contribute to inner-city revitalization through the participation of community-based housing organizations. Finally, recommendations were made for enhancing the effectiveness of the LIHTC in promoting quality housing opportunities in inner-city neighborhoods through the participation of community-based organizations.