The Low-Income Housing Tax Credit: Past Achievements, Future Challenges

Published: 2018 | Corianne Payton Scally, Amanda Gold, Carl Hedman, Matthew Gerken, Nicole DuBois | Urban League

Abstract

Despite the housing affordability challengesmany low-income renters face, most government resources for preserving and building affordable rental housing have declined. This stagnation in federal housing assistance programs means that the Low-Income Housing Tax Credit (LIHTC), which provides a federal income tax credit to private investors in eligible projects, is the primary option for preserving and expanding the supply of affordable rental housing. This report explores why LIHTC is a criticalpart of the housing safety net. We detail how and why the program has succeeded, the challenges it faces, and why the program is more important than ever.