The low-income housing tax credit (LIHTC) has less than a 50 percent chance of survival next year if the affordable housing industry does nothing, said Terri Ludwig, president and CEO of Enterprise Community Partners.
Ludwig sounded the alarm to several hundred developers attending the AHF Live conference in Chicago.
Others have warned that the mighty LIHTC could be eliminated as Congress sets its eyes on tax reform, but Ludwig went further and laid down some tough odds.
She no doubt meant her statement to be a call to arms for the affordable housing industry, the odds something that developers would not be willing to chance.
What’s more is that one Washington insider said afterward that Ludwig’s assessment is on the mark. Others also feared that the industry has become complacent following the recent election.
Throughout the conference, developers were urged to show their Congress members their LIHTC developments to generate support for the 26-year program, which could be tossed out with all other tax credits.
It is also critical to let the lawmakers know how important the housing credit is to producing jobs, especially during the economic downturn.
The National Association of Home Builders estimates that the one-year local impact of building 100 apartments in a typical family LIHTC development includes $7.9 million in local income, $827,000 in taxes and other revenue for local governments, and 122 local jobs.
The additional, annually recurring impacts of building 100 apartments in a typical family LIHTC development include $2.4 million in local income, $441,000 in taxes and other revenue for local governments, and 30 local jobs.