Low-Income Housing Tax Credit Developments and Neighborhood Property Conditions
36 Pages Posted: 22 Feb 2015
Date Written: February 20, 2015
Assisted housing has long been a contentious issue for cities and regions. On one hand, there is an acute need for affordable housing in low- and moderate-income communities. But the massing of public or otherwise subsidized housing in disadvantaged neighborhoods has given rise to concerns that “public housing” has led to the decay of these communities. The intention of this paper is to use analytical tools to evaluate the conventional wisdom that lower-income housing developments are somehow disadvantageous for the lower-income communities in which they generally are placed. The focus is on the evaluation of low-income housing tax credit (LIHTC) financed developments, as this is the typical way for developing low-income housing units today. Results suggest that while large new construction projects tend to diminish property conditions nearby, the effects of small new construction projects and larger rehabilitation projects generally are positive.
Keywords: Low-Income Housing Tax Credit, Property Conditions, Housing
JEL Classification: I3, J1, R3
Suggested Citation: Suggested Citation