TIME FOR A FLEXIBLE TAX CREDIT ?

In News by Karen Brooks-Crosby0 Comments

Is it time for the creation of a new type of housing tax credit, one that allows for flexibility relative to rent and income restrictions, provided the property maintains a stipulated average rent relative to its market?  A floor could also be instituted, i.e.  the development must provide at least 10% of its units for households earning 50% AMI or less.  Low income neighborhoods want better housing that is affordable, but they also want to know that the financial tools used to produce that housing don’t discourage truly organic mixed income housing.  They worry that the long term nature of  Low Income Housing Tax Credits (LIHTC’s) create pockets of extended poverty.  A flexible tax credit would allow low income neighborhoods to become more economically diverse over time while providing new or rehabilitated affordable housing.  It’s time for a flexible tax credit.

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