Novogradac Housing Estimate with 4 Percent LIHTC Floor Nearly Doubles
Novogradac estimates that a 4 percent minimum floor for low-income housing tax credits (LIHTCs) would result in additional 126,000 affordable rental homes produced or preserved over 2020-29–a significant boost over an earlier estimate, according to a blog post. The increase in the Novogradac estimate from 66,000 homes to 126,000 homes due to the 4 percent LIHTC floor is tied to a significant drop in the 4 percent rate in recent months as well as an increase to the baseline of private activity bond (PAB)-financed affordable rental housing, as described in another blog post. The projection presumes the issuance of PABs for multifamily housing, which are paired with 4 percent LIHTCs, will increase in states bond cap is available due to the availability of more tax credit equity. Novogradac estimates that a 4 percent floor would also result in an additional 157,400 jobs created and an additional $7 billion in federal, state and local taxes.