New report finds that the Low Income Housing Tax Credit (LIHTC) Program benefits many more households with incomes lower than the program requires. The report – What Can We Learn about the Low Income Housing Tax Credit Program by Looking at the Tenants? – is a joint effort between the Furman Center for Real Estate and Urban Policy and the Moelis Institute for Affordable Housing Policy.
Extremely low income (ELI) households (households with incomes below 30% of the area median income) occupy 40% of LIHTC housing units despite the programs requirement allowing units be occupied with households making up to 60% of the area median income. LIHTC tenants also pay less of their income to rent than renters with similar incomes who are living in private housing. However, the 30% of ELI tenants in LIHTC properties who do not receive rental assistance are severely rent burdened (pay over 50% of their income for rent).
This report concludes that the LIHTC program has successfully achieved the federal goal of serving households most in need.