As Congress looks at tax expenditures and all programs come under review, it is important to protect the Low Income Housing Tax Credit (LIHTC), the most successful affordable rental housing production program in U.S. history. 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 two 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.
On April 25, NAHB economist Robert Dietz testified before the House Ways and Means Committee during a hearing on tax reform and residential real estate. He called on Congress to maintain support for vital housing tax incentives, including the Low Income Housing Tax Credit. For more details, view Dietz’s testimony or see NAHB’s press release.
For more information, see the Benefits of the Low Income Housing Tax Credit.