The U.S. Department of Housing and Urban Development (HUD) recently announced changes to the income determination for Low-Income Housing Tax Credit (LIHTC) communities, sparking concerns among housing advocates and industry stakeholders. In response to the changes, a coalition of housing organizations issued a statement expressing their apprehensions.
One of the concerns raised by the coalition is the potential impact of the methodology changes on individuals receiving federal rental assistance. According to the statement, the changes could lead to fewer tenants qualifying for LIHTC-funded and other federally-supported housing, potentially excluding some from much-needed affordable housing programs.
"We remain deeply concerned that any changes that limit LIHTC’s effectiveness at the very time we are facing an affordable housing crisis could undermine the nation’s most successful program to create affordable housing," the coalition emphasized.
Additionally, the coalition highlighted the implications of the income limit calculation changes on the ability of LIHTC housing providers to recover costs through rent. While not traditional rent regulation, the alterations could restrict providers in high-cost environments, potentially impacting the affordability of housing for low-income renters.
The coalition urged HUD to carefully consider the repercussions of the changes, emphasizing the importance of ensuring that the LIHTC program continues to effectively serve those in need of affordable housing.
Furthermore, the statement called for a focus on policies that expand housing supply and opportunities to address the pressing housing needs in the country. The coalition urged HUD and the Biden administration to support initiatives that increase housing supply as a crucial step towards lowering housing costs and enhancing affordability.
The coalition comprises several prominent organizations, including the CCIM Institute, Council for Affordable and Rural Housing, Institute of Real Estate Management, Manufactured Housing Institute, Mortgage Bankers Association, National Apartment Association, National Association of Home Builders, National Association of REALTORS®, National Leased Housing Association, and National Multifamily Housing Council. These organizations are committed to collaborating with HUD and the administration to address the challenges in the housing market and advocate for policies that promote affordable housing solutions.
