Overview and Proposed Reforms of the Low-Income Housing Tax Credit Program

24 Pages Posted: 8 Mar 2018 Last revised: 27 Jul 2018

See all articles by Michael D. Eriksen

Michael D. Eriksen

University of Cincinnati - Department of Finance - Real Estate

Bree J. Lang

University of California, Riverside (UCR)

Date Written: July 3, 2018

Abstract

The Low-Income Housing Tax Credit (LIHTC) program provides a subsidy to developers who construct or rehabilitate rent-restricted housing units for 30 years. The program cost the US Government over $8.4 billion in lost tax revenue in 2017 and there is bipartisan support to expand future allocations by up to 50%. We provide an overview of the program and merits of the proposed increase in allocations. The analysis concludes by offering two alternative policy proposals that would increase the annual number of units subsidized under the program without increasing the aggregate dollar amount of allocations.

Keywords: Affordable Housing; Tax Credits; Housing Policy; Tax Reform

Suggested Citation

Eriksen, Michael D. and Lang, Bree J., Overview and Proposed Reforms of the Low-Income Housing Tax Credit Program (July 3, 2018). University of Cincinnati Lindner College of Business Research Paper . Available at SSRN: https://ssrn.com/abstract=3132493 or http://dx.doi.org/10.2139/ssrn.3132493

Michael D. Eriksen (Contact Author)

University of Cincinnati - Department of Finance - Real Estate ( email )

College of Business Administration
Cincinnati, OH 45221
United States

Bree J. Lang

University of California, Riverside (UCR) ( email )

900 University Avenue
Riverside, CA 92521
United States

HOME PAGE: http://https://sites.google.com/site/breejoneslang/

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