Page 13 - Balancing Priorities
P. 13

BALANCING PRIORITIES: Preservation and Neighborhood Opportunity in the Low-Income Housing Tax Credit Program Beyond Year 30 FIGURE 3: OVERALL NEIGHBORHOOD OPPORTUNITY Very-Low Low LIHTC Units Reaching Year 30 (2020-2029) All Neighborhoods All Renter Households Renter Households Below 80% AMI Source: NLIHC and PAHRC, 2018 Moderate High Very-High 29% 22% 20% 17% 12% 26% 19% 21% 18% 16% 25% 19% 20% 19% 17% 30% 20% 20% 17% 14% will likely continue to operate as affordable housing given adequate support.6 Of the remaining LIHTC units expiring between 2020 and 2029, an estimated 336,089 (69%) have for-pro t owners, according to HUD’s LIHTC data. The owner type is not identi ed for the remaining units.7 Neighborhood Desirability LIHTC units reaching Year 30 and the end of their affordability restrictions are disproportionately located in neighborhoods with low and very-low desirability compared to all neighborhoods, the neighborhoods of all renter households, and the neighborhoods of renter households below 80% AMI. Between 2020 and 2029, 42% of LIHTC units losing all affordability restrictions are located in neighborhoods with very-low desirability and 26% are in low desirability neighborhoods (Figure 2). Units located in very-low desirability neighborhoods likely face the most signi cant challenges meeting capital needs for rehabilitation due to lower rental income. Approximately 10% of LIHTC units with expiring affordability restrictions between 2020 and 2029 are located in neighborhoods of high desirability and 5% are located in neighborhoods of very-high desirability. LIHTC units located in these neighborhoods with for- pro t owners are likely at the greatest risk for being repositioned as market-rate housing with higher rents. Altogether, 36,282 LIHTC units with for-pro t owners and expiring affordability restrictions between 2020 and 2029 are located in high desirability neighborhoods, and another 16,641 units are in very-high desirability neighborhoods. Neighborhood Access to Opportunity Figure 3 shows the distribution of LIHTC units reaching the end of affordability restrictions between 2020 and 2029 in terms of overall neighborhood opportunity. Twenty-nine percent are in neighborhoods with very- low overall opportunity and another 22% 6 We categorize LIHTC units with both non-pro ts and for-pro ts in their ownership structures as having “non-pro t” owners. 7 69,197 or 14% of LIHTC units losing all affordability restrictions between 2020 and 2029 are missing information on ownership type. NATIONAL LOW INCOME HOUSING COALITION AND THE PUBLIC AND AFFORDABLE HOUSING RESEARCH CORPORATION 13 

   11   12   13   14   15