Low Income Housing Tax Credits (LIHTC)
LIHTC Units in Service: The total number of units in service through the Low Income Housing Tax Credit (LIHTC) program
U.S. Department of Housing and Urban Development (HUD)
2010 – 2018
Why are these variables important to measure?
Enacted under the Tax Reform Act of 1986, the Low Income Housing Tax Credit (LIHTC) Program is the largest source of subsidized construction for low-income housing in U.S. history. The program provides dollar-for-dollar tax credits to owners and developers of properties, who then lease a certain portion of their units to low-income households at reduced rent prices. Owners are able to rent the remaining portion of the units at market-rate rent prices, often leading to mixed-income housing developments.
The LIHTC has been an important program to increase the construction of affordable housing. It aims to reduce concentrated poverty in government-subsidized housing, since LIHTC properties are located throughout high, middle and low-income neighborhoods.
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