40% of LIHTC Units House Extremely Low-Income Residents

Rental assistance plays a critical role in allowing low-income housing tax credit (LIHTC) developments to serve extremely low-income households, according to a new report. Overall, more than 40 percent of LIHTC units house extremely low-income households, or those earning no more than 30 percent of the area median income (AMI), says the policy brief from the Furman Center and Moelis Institute for Affordable Housing Policy at New York University. Researchers analyzed income data for tenants in 16 states, covering more than 12,000 properties. This is about 38 percent of the total LIHTC housing stock. According to “What We Can Learn About the Low-Income Housing Tax Credit Program by Looking at the Tenants?,” the properties are fairly representative of the overall LIHTC universe. A big reason that tax credit apartments are affordable for extremely low-income families is the layering of rental assistance. About 70 percent of these households studied receive a form of additional rental assistance beyond the benefits of the LIHTC unit.

Affordable Housing Finance

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