Low Income Housing Tax Credits - CREPN #30

Low Income Housing Tax Credits are the funding mechanism for Affordable Housing.    Since the 2008 housing crash, the demand for rental housing has exploded.  The demand has pushed rents to multiple year over year double digit increases in many markets.  Investors and market analyst remain optimistic that for the near future, these trends will continue, as new units are absorbed as soon as they are made available.     Increased rents and stagnant wage growth has lead to a problem of affordability for many renters - Affordable Housing. In my effort to better understand what Affordable Housing, I reached out to experts in Low Income Housing Tax Credits (LIHTC), Nicolo Pinoli & Warren Sebra of Novogradac & Company. There are multiple roads to take when discussing Affordable Housing and Low Income Housing Tax Credits.  We touch on: Funding the development through the LIHTC program Operation of Affordable Housing Who is eligible to rent? ?Only those earning a maximum percentage of the Area Median Income. How the rents are determined? A calculation of 30%, of the tenant’s income? The numbers associated with a sample development of a 50 unit project including: Benefit and Obligation of LIHTC What happens at year 15 Appearance of Affordable Housing: Most newly developed Low Income Housing is impossible to differentiate from market rates properties. Three key ways LIHTC are lost: RENT; Charging more than the allowable maximum rent for a unitTENANT INCOME LIMITS: Documenting tenants income when first rentedHABITABILITY: Failure to maintain the units for residents to live For more go to: www.novoco.com