The Low Income Housing Tax Credit (LIHTC) is the most successful affordable rental housing production program in U.S. history. The LIHTC is a source of equity financing for the development of affordable housing that serve households earning 60 percent or less of the area median income with rents restricted to keep the units affordable. Through construction of new apartments, preservation of existing affordable housing, and rehabilitation of older multifamily buildings, the LIHTC adds to the nation’s supply of affordable housing.
NAHB supports the LIHTC and other tax and finance rules that promote the development of affordable housing.
Why It Matters
Eliminating the LIHTC would bring production and rehabilitation of affordable rental housing to a standstill. Since its inception, the program has made possible the production of more than 2.5 million affordable apartments. It creates approximately 95,000 new full-time jobs, adds $7.1 billion in income to the economy and generates approximately $2.8 billion in federal, state and local taxes each year. In recent years, the LIHTC has produced about 75,000 new apartment homes annually.
The demand for affordable housing is acute and far exceeds the ability of LIHTC projects to keep pace. The program is essential to address the shortage of affordable housing options in our cities and towns.