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.
Staff Resource
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