Local governments, community groups and apartment industry stakeholders cannot underestimate the importance of preservation as a critical strategy in addressing the shortfall of affordable housing.
Existing affordable units are typically supported by either a federal housing program or tax subsidy, such as the Low-Income Housing Tax Credit (LIHTC). As such, these properties are required to remain affordable, as defined by HUD, for a designated period of time. And that time is coming to an end for a growing number of units, according to MPF Research analysis.
This year, roughly 518,000 affordable units will expire; by 2025, that number will eclipse 2.6 million affordable units, with more than half coming out of LIHTC. Without a policy solution that will preserve these units as affordable, the inventory of affordable rental housing will decrease, exacerbating current affordability challenges.
- NMHC and NAA Signal Support for the Affordable Housing Credit Improvement Act
- ACTION Coalition Letter - June 2019
- Senator Harris Introduces Renter’s Tax Credit
- IRS Issues Guidance Clarifying Multifamily Housing Bonds and Low-Income Housing Tax Credit (LIHTC)
- Multifamily Industry Highlights Infrastructure Tax Priorities with Ways and Means Committee