Squeezing the Housing Credit At Both Ends
Written by Toby Halliday
Developers of affordable housing properties rely on the Low Income Housing Tax Credit (LIHTC) to provide the equity needed to build quality housing that would otherwise be unaffordable to low-income households.
High capacity nonprofit owners have used the LIHTC to build tens of thousands of affordable apartments serving residents at all income levels.
Recently, however, there has been a trend that undermines the efforts of mission-driven sponsors to preserve the quality and affordability of these properties beyond their 15-year initial compliance period.