FHFA: LIHTCs Play Key Role in Funding Affordable Rental Housing in 2015

Published by Michael Novogradac on Monday, June 20, 2016 - 12:00am

In 2015, Federal Home Loan Banks (FHLBanks) awarded $210 million to 379 rental housing developments through the Affordable Housing Program (AHP), according to the Federal Housing Finance Agency’s (FHFA’s) 2015 Report to Congress. Those properties comprised 20,581 rental homes, of which more than 70 percent (14,709) were affordable to households with very-low incomes (at or below 50 percent of the area median income).

FHFA reports that approximately 68 percent of those AHP projects received additional funding from federal programs. The most frequent source of funding was low-income housing tax credits (LIHTCs), which supported almost two-thirds of all approved rental housing applications. The HOME Investment Partnerships Program and the Community Development Block Grant Program were among the other programs used in conjunction with AHP funds.

As illustrated in the chart below, 249 (or 66 percent) of approved AHP applications were for properties that also received LIHTCs. (The numbers displayed below add up to more than the total number of projects (507) because some projects receive federal funding from more than one source.)

Blog Graph: Number of AHP Projects Approved in 2015 Receiving Federal Funds
Click to Enlarge

 

FHFA’s 2015 Report to Congress also discusses Fannie Mae’s and Freddie Mac’s affordable rental housing goals and results. Tune in to the June 21 Tax Credit Tuesday podcast to hear more.