Summary
States are facing a significant challenge as a wave of affordable housing units built under the Low-Income Housing Tax Credit (LIHTC) program is set to lose its affordability protections. With nearly 223,000 units at risk of reverting to market rates over the next five years, many low-income families are bracing for steep rent increases and potential eviction.
The LIHTC program, established in 1986, has been instrumental in creating over 3.6 million affordable housing units across the United States. However, the typical requirement for these units to remain affordable lasts only 30 years, and many units constructed during the 1990s are now reaching their expiration dates. As a result, states like California and Colorado are implementing measures to preserve these units, such as giving local governments the right of first refusal to purchase expiring properties. Yet, the limited availability of new tax credits and the financial burden on local governments and nonprofits to acquire these properties complicate efforts to maintain affordability. The lack of centralized data on expiring units further hampers strategic planning and resource allocation, leaving many families, like Marina Maalouf’s, uncertain about their housing futures.
Challenges in Preservation Efforts
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Limited Tax Credits: New tax credits to extend affordability are restricted and allocated based on state populations, making it difficult to address the growing need.
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Financial Constraints: Local governments and nonprofits often lack the necessary funds to purchase and maintain expiring developments, leading to fears of increased displacement.
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Data Gaps: The absence of comprehensive data on when LIHTC units will lose affordability makes it challenging for policymakers to act effectively.
Political Landscape
Efforts to preserve affordable housing units face a political landscape that often rewards new construction announcements over the management of existing assets. This dynamic can lead to a lack of urgency in maintaining affordable housing, as highlighted by experts in the field.
Tenant Activism
Despite the challenges, tenant activism is emerging as a crucial force in advocating for housing stability. Individuals like Marina Maalouf are becoming vocal advocates for their rights, pushing for local governments to take action to preserve affordable housing options. Their efforts are essential in raising awareness and potentially influencing policy changes to protect vulnerable communities from displacement.
Affordable housing tax credits set to expire, threatening eviction for thousands
Oct. 7 / Cbs News / Focuses on the broader implications of LIHTC expirations, emphasizing political challenges and limited funding. The piece is well-structured and informative, though slightly less personal than others. “ For more than two decades, the low rent on Marina Maalouf's apartment in a blocky affordable housing development in Los Angeles' Chinatown was a saving grace...
States scramble to shore up loss of low-cost housing
Oct. 7 / Ocregister / Highlights the personal story of Marina Maalouf, effectively illustrating the emotional stakes of the LIHTC expiration crisis. It combines expert insights with urgent calls for action, making it compelling. “ By Jesse Bedayn and Arushi Gupta | The Associated Press For more than two decades, the low rent on Marina Maalouf’s apartment in a blocky affordable housing...
Affordable housing units across states are about to disappear as LIHTC protections expire
Oct. 7 / Fast Company / Presents a comprehensive overview of the LIHTC situation, weaving in various state responses and tenant activism. Its depth is commendable, but it risks overwhelming readers with detail at times. “ For more than two decades, the low rent on Marina Maalouf’s apartment in a blocky affordable housing development in Los Angeles’ Chinatown was a saving grace...