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NYU: LIHTC Requires More Subsidies

NEW YORK CITY-A new report from the university's Furman Center finds that multifamily buildings funded by Low Income Housing Tax Credits serves households with incomes far lower than the program requires.

By Jacqueline Hlavenka | Updated on October 22, 2012

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.

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