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Report: LIHTC Primary Source of Affordable Housing, 20.6 Million Renters Cost-Overburdened

Monday, December 9, 2013 - 8:00AM

The low-income housing tax credit (LIHTC) has been the primary funding source for affordable housing since 1986, supporting the construction of 1.2 million units and the rehabilitation of 749,000 homes between 1987 and 2011, according to America’s Rental Housing: Evolving Markets and Needs, a report released today by the Harvard Joint Center for Housing Studies. The report also notes that demand for affordable units far outpaces supply, with 11.8 million extremely low-income renters competing for only 6.9 million affordable rental units in 2011, and that 20.6 million renters are cost-burdened, including 11.3 million who spend more than half of their incomes on rent. Additionally, the report cites the LIHTC’s low foreclosure rates as evidence of its success, noting that only 1 to 2 percent of LIHTC properties have experienced foreclosure.

Tune into the Dec. 17 Tax Credit Tuesday podcast to hear more about the report’s findings.

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