A new report by the HUD has found that that after an initial 15-year required “affordability period,” most Low-Income Housing Tax Credit (LIHTC) Program properties remain affordable. Since its inception, LIHTC has helped produce about 2.2 million affordable apartment units, or about one-third of all multi-family rental housing built between 1987 and 2006—arguably the largest rental housing production program in history. The study covered properties using LIHTC between 1987 and 1994, all of which had reached the 15-year point by 2009.
Under LIHTC, either 20 percent of a property’s units must be occupied by residents with incomes of less than 50 percent of area median income (AMI), or 40 percent occupied by tenants with incomes of less than 60 percent AMI. Those restrictions remain in place for 15 years, and the tax credits themselves are parceled out to developers annually for 10 years.
Read more...HUD Study Finds Most LIHTC Properties Still Affordable | Multi-Housing News Online
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