LIHTC has generated billions of dollars in private-sector investments to struggling rural communities and must continue to be a centerpiece of federal tax and housing policy.
Washington, D.C. (PRWEB) August 13, 2013
Today, a comprehensive report on the impact of the Low-Income Housing Tax Credit (LIHTC) on rural communities was released. The report, “The Low-Income Housing Tax Credit: Overcoming Barriers to Affordable Housing in Rural America,” was prepared by Rapoza Associates in partnership with five members of the National Rural Housing Coalition, including Self-Help Enterprises, Coachella Valley Housing Coalition, Peoples’ Self-Help Housing Corporation, South County Housing and Community Housing Improvement Program of California. The in-depth analysis of the impact of LIHTC in rural communities comes at a time when Members of Congress are drilling down on the idea of tax reform.
“This report, which includes 37 case studies, offers a wide-ranging look at how the Low-Income Housing Tax Credit helps rural communities overcome high rates of poverty and substandard housing to provide access to affordable housing in our nation’s rural communities,” said Peter Carey, President and CEO of Self-Help Enterprises in Visalia, California and Board Member of the National Rural Housing Coalition. “As our country looks for ways to improve our tax policy, we need to preserve programs that work. The data and outcomes in this report demonstrate the effectiveness of LIHTC, which we hope will help inform policymakers as they proceed with tax reform efforts.”
LIHTC is the principal tool used by rural communities to develop and preserve affordable rental housing. In “The Low-Income Housing Tax Credit: Overcoming Barriers to Affordable Housing in Rural America,” it is noted that more than 7.3 million rural families live in housing with at least one major affordability, quality, or crowding issue. The report goes on to document the success of the credit in preserving and developing more than 270,000 rental units since its inception in 1986. As a consequence of its activity in rural communities, the tax credit has created 1.15 million jobs, has generated $86.9 billion in local income, and has increased state and local tax revenue by $67.8 billion.
Overall, LIHTC accounts for about 50 percent of all financing used by National Rural Housing Coalition members to build or preserve affordable rental housing in rural America.
“LIHTC has generated billions of dollars in private-sector investments to struggling rural communities and must continue to be a centerpiece of federal tax and housing policy. The report shows that LIHTC helps improve the quality and quantity of affordable housing in small towns and farming communities across America,” said Bob Rapoza, President of Rapoza Associates and a 30-year veteran of housing policy who serves as the Executive Secretary for the Coalition.
Low-Income Housing Tax Credit is the largest source of federal housing funding and is the principal tool used by rural communities to overcome barriers to affordable rental housing. Since 1986, LIHTC has generated nearly $100 billion of investments into rural and urban communities alike by fostering private-public partnerships. Under the program, housing developers raise the capital needed to build or preserve affordable rental housing, by selling the tax credit to investors who can then claim the credit to offset their federal tax liability.
Self-Help Enterprises is an organization dedicated to self-help housing, sewer and water development, housing rehabilitation, multifamily housing and homebuyer programs in the San Joaquin Valley of California. The goal of Self-Help Enterprises is to help farm laborers and other low-income families to help themselves.
Rapoza Associates is a lobbying and government relations firm specializing in federal community development policy. Our clients work to build stronger communities across the nation – and we support their work by providing them a range of key services, including representation before Congress and federal agencies and consultation on federal policy and programs. We have more than 30 years of experience in legislative strategy, public policy analysis and action-oriented research.