NCSHA Report: Affordable Housing Properties Seeing Unexpected Cost Jumps of 30%

Tuesday, September 20, 2022 - 9:30AM

Affordable housing developments have seen unexpected cost increases averaging 30% in recent years, and state housing finance agencies have taken extraordinary actions to help them, according to a report released today by the National Council of State Housing Agencies (NCSHA). Filling Funding Gaps: How State Agencies are Moving to Meet a Growing Threat to Affordable Housing, produced by Abt Associates for NCSHA, analyzed trends in 11 states and conducted interviews with officials and developers in other states. The report concluded that nearly all properties awarded low-income housing tax credits (LIHTCs) from 2019 to the present have faced “significant, unexpected cost increases after being awarded credits.” NCSHA calls for Congress to increase funding for HOME housing block grants and to expand the LIHTC incentive before this session ends in December.

Addressing financial gaps created by rising prices will be discussed at the Novogradac 2022 Affordable Housing Tax Credit and Bonds Conference, Sept. 29-30 in Nashville.

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