Housing Tax Credit Research Articles

The Association of the Low-Income Housing Tax Credit Program and Intimate Partner Violence Related Emergency Department Visits

The Association of the Low-Income Housing Tax Credit Program and Intimate Partner Violence Related Emergency Department Visits

A UTILIZAÇÃO DE CRÉDITOS FISCAIS NAS PARCERIAS PÚBLICO-PRIVADAS PARA HABITAÇÕES DE BAIXA RENDA

This article examines the use of tax credits in public-private partnerships (PPPs) for the development of low-income housing in the United States. PPPs offer a collaborative approach to addressing the housing crisis by combining resources from both the public and private sectors. Tax credits, such as the Low-Income Housing Tax Credit (LIHTC), play a crucial role in incentivizing private investment in affordable housing projects. This study analyzes the effectiveness of these partnerships and the impact of tax credits on expanding low-income housing. Furthermore, we discuss the challenges and opportunities associated with implementing such initiatives, highlighting success stories and lessons learned.

Strategic planning and investment analysis for affordable housing: Enhancing viability and growth

Strategic planning and investment analysis are critical to enhancing the viability and growth of affordable housing projects. As urban populations rise and housing affordability challenges persist, effective strategies are needed to ensure that affordable housing developments are both financially viable and scalable. This paper explores key aspects of strategic planning and investment analysis in the context of affordable housing, emphasizing their role in fostering sustainable growth and maximizing impact. Strategic planning involves setting clear objectives, identifying key success factors, and developing actionable plans to achieve desired outcomes. In affordable housing, this includes assessing local housing needs, understanding market dynamics, and aligning development goals with community priorities. Effective strategic planning ensures that housing projects are responsive to the needs of low- and moderate-income populations while addressing broader urban development goals. Investment analysis plays a crucial role in determining the financial feasibility and sustainability of affordable housing projects. This includes evaluating funding sources, estimating costs, and projecting financial returns. Key components of investment analysis include financial modeling, risk assessment, and scenario planning. By employing robust analytical tools, stakeholders can identify potential financial challenges and opportunities, optimize resource allocation, and ensure that projects are financially sound. Case studies from various regions highlight successful strategic planning and investment practices. For instance, the Low-Income Housing Tax Credit (LIHTC) program in the United States has demonstrated how targeted investment incentives can stimulate the development of affordable housing while achieving financial and social returns. Similarly, initiatives in European countries have illustrated the importance of integrating strategic planning with innovative financing mechanisms to address housing shortages. Despite these successes, challenges remain, including securing adequate funding, navigating regulatory environments, and managing project risks. Addressing these challenges requires a collaborative approach involving government agencies, private investors, and community organizations. By leveraging strategic planning and investment analysis, stakeholders can enhance the viability and growth of affordable housing projects, ultimately contributing to more sustainable and inclusive urban development. In conclusion, strategic planning and investment analysis are essential for advancing affordable housing initiatives. They enable stakeholders to navigate complex financial landscapes, mitigate risks, and achieve long-term goals, fostering the growth of affordable housing and improving housing stability for underserved populations.

Economic and social impact of affordable housing policies: A comparative review

Affordable housing policies play a pivotal role in shaping the economic and social landscapes of nations, especially in the context of growing urbanization and income inequality. This comparative review examines the economic and social impacts of various affordable housing policies across different countries, providing a comprehensive analysis of their effectiveness and broader implications. Economic impacts of affordable housing policies are multifaceted, influencing job creation, economic growth, and household stability. By increasing the supply of affordable housing, these policies can stimulate construction and related industries, leading to significant job creation and economic activity. Affordable housing also enhances household stability by reducing housing costs, allowing for greater disposable income and increased consumer spending. This review explores how policies such as tax incentives, subsidies, and inclusionary zoning have been utilized to promote affordable housing development and their resultant economic benefits. Social impacts of affordable housing policies are equally significant, affecting community cohesion, health outcomes, and educational attainment. Stable and affordable housing contributes to improved mental and physical health by reducing stress and exposure to poor living conditions. Furthermore, it enhances educational outcomes for children by providing a stable home environment conducive to learning. This review discusses policies such as rent control, public housing initiatives, and housing vouchers, highlighting their role in fostering social inclusion and reducing disparities. Case studies from diverse regions, including the United States, Singapore, and Brazil, illustrate the varied approaches and outcomes of affordable housing policies. In the United States, the Low-Income Housing Tax Credit (LIHTC) program has been instrumental in increasing affordable housing supply and promoting economic development in underserved areas. Singapore's Housing and Development Board (HDB) has successfully provided high-quality, affordable housing to a majority of its population, significantly enhancing social stability. Brazil's Minha Casa Minha Vida program showcases how large-scale public housing initiatives can address housing deficits and improve living standards for low-income families. The review concludes that while affordable housing policies have distinct economic and social impacts, their success largely depends on contextual factors such as policy design, implementation strategies, and local economic conditions. Policymakers must consider these factors to create effective and sustainable housing solutions that promote both economic prosperity and social well-being. Keywords: Economic, Social: Impact, Affordable Housing, Policies.

Can Fair Share Policies Expand Neighborhood Choice? Evidence From Bypassing Exclusionary Zoning Under Massachusetts Chapter 40B

Opening up neighborhoods that offer greater opportunities for social mobility to low- and moderate-income households remains a challenge in the United States. Exclusionary zoning practices act as a barrier to current efforts by restricting the supply of affordable housing. In this paper, we examine whether fair share policies that seek to bypass these restrictive zoning practices offer one potential solution. Focusing on Massachusetts Chapter 40B, we find clear evidence that such policies build affordable housing in neighborhoods with strikingly greater opportunities for social mobility than are otherwise available to low- and moderate-income households. Leveraging novel data on 40B development addresses linked to a wide range of public and administrative records, we find that 40B produces affordable units in neighborhoods with greater economic mobility, higher performing schools, greater social capital, less pollution, better health outcomes, and lower incarceration rates than both the typical neighborhood in Massachusetts and those available to beneficiaries of the state’s Low-Income Housing Tax Credit, Housing Choice Voucher, and public housing programs. Consistent with previous research on policies that have segregated affordable housing and opportunity, we also find that neighborhoods with affordable 40B units are whiter and more affluent than average. An examination of underlying policy mechanisms suggests that 40B’s ability to bypass exclusionary zoning plays a central role in explaining differences in neighborhood characteristics between 40B and other programs. We further find little evidence to support concerns that 40B’s zoning override leads to affordable 40B units being built in the least advantaged areas of municipalities, in polluted zones, or near highways, though a non-trivial share of units are located in industrial zones. These results suggest that policies like 40B may be valuable complements to other major housing programs in the United States.

Does the Low-Income Housing Tax Credit Program Expand Access to Opportunity Neighborhoods? Tracking Movements of Low-Income Tenants in California

The Low-Income Housing Tax Credit (LIHTC) program can potentially help expand access to neighborhoods with low poverty and economic opportunities for low-income households. Prior studies described that LIHTC units are in neighborhoods with relatively high poverty, but with improvements in recent years. Beyond cross-sectional analyses, scholars have not extensively looked at the movements of tenants. It remains unclear whether the program creates opportunities for low-income households to move into better neighborhoods than they previously lived in or reinforces segregation by encouraging moves to similarly or more disadvantaged neighborhoods. Using an extensive consumer database, I am tracking the movements of households who move into new LIHTC properties in California. The experimental findings show that residents experience, on average, increases in poverty exposure by up to six percentage points over other moved low-income renters. Tenants see lower levels of neighborhood amenities than at their previous addresses. The construction of LIHTC housing can increase the chance of households moving into minority-concentrated areas.

"You Need to Keep It Going, Mind, Body, and Spirit": Older Adults' Perspectives on Aging in Place in Subsidized Housing

Abstract: In the U.S., more than one million older adults with low incomes live in apartment buildings subsidized by the Low-Income Housing Tax Credit. Although this population experiences disproportionate rates of nursing home admission, little is known about residents' perspectives on factors that influence their ability to live independently in these settings. Fifty-eight residents aged 62 and older and eight study partners participated in qualitative interviews about their perspectives on living independently in subsidized housing, including barriers and facilitators. We analyzed transcripts using a hybrid inductive and deductive approach to qualitative thematic analysis. Barriers and facilitators for living independently in subsidized housing related to the influence of the social and physical environment on individuals' experiences of living independently, including factors unique to subsidized housing. Findings suggest how interventions to optimize functional status and promote independence among older adults living in subsidized housing can build on existing strengths of the subsidized housing environment to improve outcomes.

The Low-Income Housing Tax Credit Program: A Comprehensive Review

The Low-Income Housing Tax Credit Program: A Comprehensive Review

Producing affordable housing in higher-opportunity neighborhoods: Incentives in California’s LIHTC program

ABSTRACT Housing policy shapes where low-income families live and whether they can access neighborhoods that promote children’s well-being. Since 2018, California’s Low-Income Housing Tax Credit (LIHTC) program has incentivized the development of family affordable housing in higher-resource areas. We examine how the location of proposed and funded LIHTC developments changed in response to these incentives. We find that the probability that large family projects—those eligible for incentives—were proposed in higher-resource areas increased from 0.19 to 0.29, comparing 2014-2017 and 2018–2021. The probability that funded large family projects were located in higher-resource areas doubled, from 0.15 to 0.30. The probability of location in higher-resource areas declined for developments ineligible for incentives. Interviews with affordable housing developers illuminate the role of mission and resources in shaping their responses to program incentives. We conclude with a broader discussion of the LIHTC program as a tool for reducing neighborhood inequality.

Affordable housing through the Low-Income Housing Tax Credit program and opioid overdose emergency department visits

IntroductionThe United States continues to experience an opioid overdose crisis. As a key social determinant of health, housing insecurity may contribute to initiation of substance use and can threaten outcomes for those with substance use disorders by increasing stress, risky substance use, discontinuity of treatment, and return to use, all of which may increase the risk of overdose. The Low-Income Housing Tax Credit (LIHTC) program supports access to rental housing for low-income populations. By facilitating access to affordable housing, this program may improve housing security, thereby reducing overdose risk. MethodsWe used data from LIHTC Property Data and the State Emergency Department Database (SEDD) to identify the number of LIHTC units available and opioid overdoses discharged from the emergency department (ED) in 13 states between 2005 and 2014. ResultsBetween 2005 and 2014, mean opioid overdose ED visits were higher in states with fewer LIHTC units (<28 LIHTC units per 100,000 population) at 26.5 per 100,000 population as compared to states with higher LIHTC units (≥28 LIHTC units per 100,000 population) at 21.1 per 100,000. We find that greater availability of LIHTC units was associated with decreased rates of opioid overdose ED visits (RR 0.94; CI 0.90, 1.00). ConclusionsGiven the importance of housing as a key social determinant of health, the provision of affordable housing may mitigate substance misuse and prevent nonfatal opioid overdose.

Changes in criminal justice involvement among renters in Low-Income Housing Tax Credit properties

In the United States, the Low-Income Housing Tax Credit (LIHTC) is the main way that the federal government subsidizes place-based housing for low-income individuals including those with experiences of homelessness. Although these communities are at risk of criminal justice involvement (CJI), the relationship between living in LIHTC housing and CJI remains underexplored. This study analyzed data on a retrospective cohort of LIHTC supportive housing residents to examine changes in CJI after move-in and how residents with CJI and without CJI after move-in differed. Compared to the time period before move-in, arrests, convictions, and time sentenced to confinement decreased significantly after move-in. Age, sex, and more extensive criminal history were significantly associated with CJI after move-in. Using negative binomial regression, increasing time in housing was associated with decreasing arrests, convictions, and time sentenced to confinement after move-in.

Low value and hard to stack: Opportunity zones and the low-income housing tax credit

ABSTRACT Established in 2017, Opportunity Zones (OZs) promised to spur investment in undercapitalized communities. Early evaluations find that OZs have had nominal effects on employment and real estate outcomes. Distressed community development, however, has historically been driven by affordable housing production. Conceptually, developers can stack OZs with the Low-Income Housing Tax Credit (LIHTC), the nation’s largest program for affordable housing. Therefore, this study seeks to estimate whether OZs have increased affordable housing production. First, we scan press announcements and OZ-tracking websites through July 2022 to document evidence of OZ-financed affordable housing. Second, we use a difference-in-differences approach to compare LIHTC outcomes through 2018 in OZs with areas that were OZ-eligible but not designated. We find only 60 examples of OZs supporting affordable housing projects across the country. We also find that OZs do not have statistically significant effects on LIHTC outcomes. We document findings from 16 interviews conducted in 2019 and 2020 to contextualize why OZs are failing to stimulate affordable housing production. In conclusion, we discuss how OZs could be modified to better encourage affordable housing, but we also reflect on whether such modifications would be desirable for goals of efficiency and distressed community development.

Examining the Potential Impact of Restricting Low-Income Housing Tax Credit Housing for Individuals With Certain Criminal Convictions in Texas

Because housing is central to the recovery of individuals with experiences of homelessness and incarceration, it is important to consider how U.S. policies denying housing to residents with criminal histories can adversely affect racial and ethnic minorities and individuals with a history of homelessness. The state of Texas passed a rule specifying certain criteria that Low-Income Housing Tax Credit (LIHTC) supportive housing providers must use to screen tenants using criminal history. A retrospective cohort of 600 LIHTC supportive housing residents was used to estimate the potential impact of the rule. Based on this sample, the rule would have resulted in significantly higher proportions of Black and chronically homeless individuals being denied housing compared to the proportions of White and low-income individuals, respectively, who would have been denied housing. With the exception of drug convictions, there was no significant difference in recidivism between residents who would have been affected by the rule and unaffected residents who also had criminal justice involvement within a comparable time frame before move-in.

Health and Healthcare Access Among Adults Living in Affordable Housing: National Estimates for the Low-Income Housing Tax Credit

By merging data from the National Health Interview Survey (2004–2016) with a census of buildings financed by the Low-Income Housing Tax Credit (LIHTC), this study provides national estimates for the health status and healthcare access among low-income adults living in LIHTC-financed housing. Compared to those not living in LIHTC-financed housing, unadjusted analyses found that younger adults (age 18–64) living in LIHTC-financed housing reported worse health status, more psychological distress, and more use of emergency department care, but they were also more likely to be insured, receive a flu vaccine, and have a usual source of care. Older adults (age 65+) living in LIHTC reported more psychological distress, more need for assistance with activities of daily living, more falls in the past year, and more use of emergency department care, as well as a slightly higher likelihood of being insured. Adjusted analyses revealed that sociodemographic characteristics helped explain some but not all of these findings, suggesting a need for further investigation of the drivers of health status and healthcare access for adults living in LIHTC-financed housing.

JUE Insight: The Effect of Relaxing Local Housing Market Regulations on Federal Rental Assistance Programs

The majority of U.S. households that qualify for federal rental housing assistance do not receive it. In the absence of an entitlement to housing assistance, an underexplored cause of the shortfall is that higher rents in some areas driven by supply-constraining local regulations increase program costs, leaving fewer funds available to serve additional families. In this paper, we simulate the effect of increasing housing supply on the cost of Section 8 housing assistance programs in Los Angeles, as well as all 11 metropolitan areas most constrained by local regulations. If Los Angeles (all 11 metropolitan areas) produced new housing units at the same rate as the 90th percentile metropolitan area for a decade, market rents would fall by 18.1 percent (2.0 to 24.0 percent), and federal cost savings would equal $353 million ($1.8 billion), enough to increase the number of assisted families by 23.8 percent (18.6 percent). For comparison, doubling the number of units placed in service through the Low Income Housing Tax Credit for a decade—an alternative method for increasing housing supply—would lead to much lower cost savings of $18 million in Los Angeles, and $231 million across all 11 metropolitan areas.

Inaccuracies in Low Income Housing Geocodes: When and Why They Matter

Scholars across disciplines frequently employ data on housing developments subsidized by the National Low Income Housing Tax Credit (LIHTC). We find that the geographic coordinates for these developments, generated by the U.S. Department of Housing and Urban Development (HUD), are frequently inaccurate. Using both the population of data from California and a national sample, we find that HUD-provided geocodes are inaccurate nearly half the time while Google-generated geocodes are almost always more accurate. However, while Google’s geolocation is more likely to be accurate, when it is inaccurate, it deviates from the true location by a much greater distance than HUD. We therefore recommend that scholars use Google-generated geocodes for most research applications where the localized environment matters; however, in studies where observations are aggregated to a larger area, researchers may prefer to use HUD geocodes, which are more frequently inaccurate but typically by smaller distances.

A Missed Opportunity? The 4% Low-Income Housing Tax Credit Program

The Low-Income Housing Tax Credit program is the largest housing production subsidy in the U.S. Two types of credit, known as the 9% credit and the 4% credit, are subject to different allocation criteria. The 4% program has been flying under the radar of policymakers, housing advocates, and researchers since its inception. Whereas newly constructed 9% units are increasingly sited in lower poverty neighborhoods, 4% investment is made in high-poverty and low-opportunity neighborhoods. This paper reveals that states have not actively influenced the locational outcomes of 4% projects credit until recently. Policy levers have a more substantial impact on the outcomes of the 9% program. However, the results indicate that increased competition and strong policy levers have enabled some states to influence the siting outcomes of 4% projects. As states have significant power over tax credit allocations and additional financing required to enable the 4% credit, they could consider explicitly using this credit to further fair housing goals and help low-income households reach opportunities. However, careful consideration is needed to balance these goals with neighborhood revitalization.

The Geography of Absence: Cities, Towns, and Suburbs with No LIHTC Housing

The Low-Income Housing Tax Credit (LIHTC) is the largest affordable housing production program in the United States. The program has been the subject of some criticism because it has done an unimpressive job of placing low-income renter households in high-opportunity neighborhoods, especially in suburban jurisdictions. This research examines, at the municipal level, what kinds of communities do not contain LIHTC properties. Communities with no LIHTC properties are compared with places that include LITHC housing in terms of geographic, demographic, socioeconomic, and housing-stock characteristics. The analysis focuses on all municipalities in the US and those that grew in population and multifamily housing from 2010 to 2019. It finds that 72% of all municipalities, and 52% of all growing municipalities contain no LIHTC housing. A logit analysis of the factors that influence the likelihood that LIHTC housing is absent from a municipality finds that the most important predictors are population size, being a suburb in a large metropolitan area, and the percentage of rental and multifamily housing.

Increasing Access to High-Quality Schools in Indianapolis Through the Low-Income Housing Tax Credit Qualified Allocation Plan

Increasing Access to High-Quality Schools in Indianapolis Through the Low-Income Housing Tax Credit Qualified Allocation Plan

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

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.