Low-Income Housing Tax Credit Program Assessment

This technical report provides a comprehensive review of the Low-Income Housing Tax Credit (LIHTC) program, which serves as the primary federal funding source for constructing and rehabilitating affordable rental housing for low-income households in the United States. The report synthesizes existing literature on various aspects of the LIHTC program, including its efficiency, operation, tenant outcomes, and neighborhood impacts. It discusses the program's critical role in producing affordable housing and addresses ongoing debates regarding its effectiveness and reach. The report also highlights the significance of neighborhood opportunities for disadvantaged populations and examines the implications of legislative changes on the program's future. Additionally, it outlines the operational framework of LIHTC, including the allocation of tax credits, compliance requirements, and the role of state housing finance agencies. The report concludes with a discussion on the future of the LIHTC program amidst evolving housing policies and market conditions.