NEW YORK CITY-Over the last 25 years, the federal Low Income Housing Tax Credit Program has created over 2.2 million units of affordable housing and remains the largest affordable housing program in the US. But new research is shedding light on the impact it has on multifamily owners/managers and tenants.
A study from the NYU Furman Center for Real Estate and Urban Policy and the Moelis Institute For Affordable Housing Policy finds that the Low Income Housing Tax Credit program serves a substantial number of households with incomes far lower than the program requires. According to the study, approximately 40% of LIHTC units house extremely low-income households with incomes below 30% of the area median income, even though program rules allow the developments to serve households with incomes up to 60% of the area median income.
The report, “What Can We Learn About the Low Income Housing Tax Credit Program by Looking at the Tenants?”, also finds that tenants experience a lower rent burden than renters with similar incomes living in private housing.
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