Affordable Housing Market Takes a Hit
The Trump administration’s plan to lower corporate tax rates has created uncertainty in the affordable housing market by devaluing low-income housing tax credits (LIHTC). LIHTC devaluation is casting a chilling effect on the construction of affordable housing units nationally, including a Jamaica Plain project currently under construction. The LIHTC program, a widely utilized $8 billion tax credit, is the primary resource for the creation of affordable units, providing crucial equity for 90% of all new affordable units built. According to Boston’s Department of Neighborhood Development, from 2009 to 2014 tax credits, including LIHTCs, provided over $170,000 of funding for each of the more than 1100 affordable units created in the city during that 5-year period.
Posted In: Publications