The Low-Income Housing Tax Credit (LIHTC) is a federal program launched in 1987 that provides tax credits to developers in exchange for keeping rents low. Since its inception it has pumped out 3.6 million units nationwide. The buildings need to be kept affordable for a certain amount of time — normally a minimum of 30 years. For the wave of LIHTC construction in the 1990s, those deadlines are arriving now, threatening to cause a drop in affordable housing supply when it is already struggling. The best nationwide analysis estimates that by 2030 roughly 350,000 LIHTC units are at risk of losing affordability. Some states have extended the affordability, while others are prioritizing tax credits for expiring developments. Read more here.
Source: AP News; 10/7/2024