About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 Everett Stamm & Taylor LaJoie, An Overview of the Low-Income Housing Tax Credit 1 (2020)

handle is hein.taxfoundation/tfovlwin0001 and id is 1 raw text is: An Overview of the Low-Income Housing Tax Credit Everett Stamm Research Assistant FISCAL FACT No. 722 Aug. 2020 Taylor LaJoie Policy Analyst Key Findings The Low-Income Housing Tax Credit (LIHTC) offers developers nonrefundable and transferable tax credits to subsidize the construction and rehabilitation of housing developments that have strict income limits for eligible tenants and their cost of housing. The LIHTC has subsidized over 3 million housing units since it was established in 1986, the largest source of affordable housing financing.1 According to the Department of Housing and Urban Development, the LIHTC costs the government an average of $8 billion in forgone revenue each year.2 Research indicates that LIHTC developers produce housing units that are an estimated 20 percent more expensive per square foot than average industry estimates.3 The LIHTC suffers from fraud and is criticized as an ineffective method of providing affordable housing. Congress should consider improvements to oversight and administration of the credit, such as recommendations by the Government Accountability Office for improved record keeping, data sharing, and oversight, to strengthen cost assessment and fraud risk management.4 The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonprofit organization. ©2020 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org 1 Will Fischer, Low-Income Housing Tax Credit Could Do More to Expand Opportunity for Poor Families' Center on Budget and Policy Priorities, Aug. 28, 2018, 1, https://www.cbpp.org/sites/default/files/atoms/files/8-28-18hous.pdf. 2 Department of Housing and Urban Development, Office of Policy Development and Research, Low-Income Housing Tax Credits, June 5, 2020, https://www.huduser.gov/portal/datasets/ihtc.html. 3 Michael Eriksen, The Market Price of Low-Income Housing Tax Credits' Journal of Urban Economics 66:2 (September 2009), 141-49. 4 Daniel Garcia-Diaz, Low-Income Housing Tax Credit: Improved Data and Oversight Would Strengthen Cost Assessment and Fraud Risk Management, Government Accountability Office, September 2018, 1, https://www.gao.gov/assets/700/694541. pdf.