EP#104 Michael Novogradac | LIHTC Is Under Fire. Is It Still Needed?

<p>The Low Income Housing Tax Credit (LIHTC) is turning 40 years old this month, and despite financing 4 million units of affordable housing — creating far more low-income housing than any other program — LIHTC is taking heat from all sides these days. You&#39;ve probably heard many of the criticisms: &quot;It&#39;s a developer giveaway and a financial boondoggle! It&#39;s not truly affordable to low-income households! LIHTC rents are comparable to market-rate rents and therefore the subsidies aren&#39;t needed!&quot; So, what&#39;s the truth? What&#39;s the data tell us? Rental housing economist Jay Parsons rolls back the tape on how and why LIHTC was created back in October 1986, explains (at a very high level) LIHTC&#39;s unique public/private partnership model, and addresses the growing chorus of criticisms. In particular, Jay makes the point that LIHTC is working as intended, primarily housing very low-income households earning at or below 30% of the area median income. Jay also discusses why it&#39;s fair to criticize and reform many of LIHTC&#39;s administrative processes (which are often anything but efficient) while still acknowledging the program&#39;s remarkable outcomes in creating affordable housing. Later in the program, Jay welcomes in the leading guru of all things LIHTC: Michael Novogradac, who has been involved with LIHTC tax policy since Day 1 back in 1986 and continues to be a guiding voice in D.C. and across the country. Mike shares his take on how LIHTC is working relative to its original goals 40 years ago, and addresses the range of criticisms targeting the program. Mike shares data and insights that can be helpful for pro-housing voices hoping to respond to LIHTC critics with thoughtful, data-backed commentary. Also in this episode: Jay breaks down the latest headlines impacting apartments and SFR, including rising multifamily delinquency rates at Fannie Mae and Freddie Mac. And Jay also shares his hot take on why there&#39;s no such thing as &quot;Class B/C&quot; apartments, and why it&#39;s increasingly important to separate B&#39;s from C&#39;s.</p>