The Oklahoma Coalition for Affordable Housing, an NLIHC state partner, recently released Oklahoma’s Affordable Housing Act Tax Credit- Economic Impact 9-2018. The report documents the results of an assessment by the Oklahoma Department of Commerce on the economic impact of the state’s low income housing tax credit from 2015 to 2018. The report finds that the tax credit had positive impacts in communities throughout Oklahoma and highlights the need for more resources to address homelessness and high housing cost burdens in the state. The Oklahoma Incentive Evaluation Commission is currently reviewing the credit and will make formal recommendations on the credit to the Oklahoma state legislature on November 15.
The “Oklahoma Affordable Housing Act,” (S.B. 2128), signed into law in June 2014, authorized up to $4 million per year in nonrefundable state low income housing tax credits to counties with populations of 150,000 or fewer. The credit targets tenants making 60% or less of area median incomes (AMIs) with a focus on families and seniors. The state credit has the same compliance requirements and 10-year tax credit period as the federal Low Income Housing Tax Credit.
From 2015 to 2018, the tax credit invested $15.3 million, which created 36 developments consisting of 2,007 units in 27 communities. During peak construction, 3,900 jobs were available to community members. The overall economic contribution from developers and leasing companies was over $575 million. For every dollar invested through the credit, almost $5.75 was generated in the local economy.
The state low income housing tax credit is essential for addressing the affordable housing crisis in Oklahoma. According to the 2015 Oklahoma Statewide Housing Needs Assessment, approximately 40% of renters in the state are housing cost-burdened, spending more than 30% of their incomes on their housing. The situation is even worse for the state’s more than 134,000 extremely low income households, those with incomes below the poverty line or 30% of AMIs. According to NLIHC’s report The Gap: A Shortage of Affordable Homes, 65% of Oklahoma’s lowest income households spend more than half of their incomes on their housing costs. The HUD Homeless Point-in-Time count from January 2017 revealed 4,199 homeless persons in Oklahoma, with 2,385 in emergency shelters, 699 in transitional housing, and 1,115 unsheltered. Even with the state and federal tax credits, much more needs to be done to meet the affordable housing needs of the lowest income households in Oklahoma.
“The production of affordable housing, so desperately needed by families, seniors, veterans and the disabled, has had a tremendous positive impact on our state by also providing good paying jobs while stabilizing our communities,” said Greg Shinn, board president of the Oklahoma Coalition for Affordable Housing.
To learn more about the report contact Andrea Frymire, secretary of the board at the Oklahoma Coalition for Affordable Housing, at: [email protected]
Read the full report at: https://bit.ly/2IODHcK