Leveraging Low Income Housing Tax Credits to Support Thriving Communities

In 2019, more than $948 million of LIHTC were distributed to states

2019 QAP Data Analysis

As has been the trend in years past, in 2019 all states and territories included at least one method for incentivizing housing for vulnerable individuals and families either as part of the QAP or through an alternative state resource that was leveraged alongside LIHTC.

When comparing year-over-year data, there was an increase from 2018 in the number of states that either required or incentivized extended low-income periods for developments. Similarly, more states included fair housing requirements that went beyond the Fair Housing Act. There was also an increase in the number of states using set-asides for extremely low-income (ELI) units serving those at or below 30% area median income (AMI); however, fewer states actually required ELI units as part of a threshold.

Resources

CSH Policy Brief

Find Your State QAP Data

Supportive Housing Needs Assessment and Racial Disparities and Disproportionality Index

Credit Allocation Categories

Threshold Requirements

Serve Extremely Low-Income Population 4%

Serve Vulnerable Individuals/Families 26%

Other Resources to Expand Supportive Housing Development 9%

Service Enrichments 24%

Extended Low-Income Use 35%

Integrated Design 13%

Exceeds Fair Housing Regs 11%

Credit Set-Aside

Serve Extremely Low-Income Population 11%

Serve Vulnerable Individuals/Families 37%

Other Resources to Expand Supportive Housing Development 19%

Service Enrichments 13%

Geographic Requirements 47%

Scoring Incentive

Serve Extremely Low-Income Population 72%

Serve Vulnerable Individuals/Families 83%

Other Resources to Expand Supportive Housing Development 65%

Service Enrichments 72%

Extended Low-Income Use 48%

Geographic Requirements 57%

Integrated Design 48%

Supportive Housing Calculator

HFAs and anyone advocating for a Supportive Housing Set-Aside in their state's QAP can use our Supportive Housing Calculator to project the number of supportive housing units that can be built through a dedicated supportive housing set-aside. The calculator allows for local per-unit development cost adjustment.

Recommendations

CSH estimates that there are 1.1 million individuals and families in need of supportive housing nationwide. We also expect the COVID-19 pandemic to increase this number as many individuals and families will be affected by loss of income and increasing housing instability as a result. As state leadership begins to plan for 2021 and continues to manage the effects of the COVID-19 pandemic, the Qualified Allocation Plan (QAP) offers one tool to leverage LIHTC alongside broader state strategies for promoting thriving communities.

Allocate

Allocate Low Income Housing Tax Credits for Supportive Housing

Prioritize

Prioritize populations most in need of supportive housing and large families

Requirements

Include Requirements for Extremely Low-Income Units

Equity

Ensure equitable access to housing and address disparate impact to fair housing

Quality

Clearly define supportive housing and ensure quality standards