Analysis: Tax Reform Bill Would Reduce Affordable Rental Housing by Nearly 1 Million Units

Friday, November 3, 2017 - 1:15pm

As currently proposed, the Tax Cuts and Jobs Act would reduce the future supply of affordable rental housing by nearly 1 million units, according to analysis by Novogradac & Company LLP. The bill, introduced Thursday and amended today, features a set of changes that would negatively affect the number of affordable rental homes built or renovated by the low-income housing tax credit (LIHTC), including the elimination of private activity bonds and associated 4 percent LIHTCs, a lower corporate tax rate and a change in the way inflation adjustments are made. The combined effect of these changes could reduce affordable rental housing production related to LIHTCs and bonds by as much as two-thirds.