More than half of all states have measures aimed at protecting low-income housing tax credit (LIHTC) properties from disasters, according to a new report from Freddie Mac.
Overall, 32 states, including Washington, D.C., have included some hazard-resistance provisions in their qualified allocation plans (QAPs), covering water conservation, wildfire protection, flood mitigation, and storm protection measures. They run the gamut from flood plain proximity requirements to fire retardant window coverings.
In addition, 27 states have provisions that aid recovery, and 17 states have measures in both hazard-resistance and recovery measures, reports the government-sponsored enterprise in “Climate Resiliency Incentives in LIHTC Qualified Allocation Plans.”
Freddie Mac released its findings after a review of QAPs from all 50 states and Washington, D.C. These plans outline how each state housing finance agency awards its housing tax credits.
“Developing and rehabilitating affordable properties with resiliency in mind is important to mitigating disaster risk that can displace families,” said Corey Aber, vice president of mission, policy, and strategy for Freddie Mac Multifamily. “Our research shows the varying approaches states are taking to make affordable housing more resilient and quick to recover. Our findings highlight a variety of property-level measures that may help multifamily properties mitigate disaster risk and improve recovery.”
The states with recovery provisions in their QAPs use a variety of incentive types. For example, four states—Georgia, Iowa, Louisiana, and Michigan—have set-asides for housing recovery after a major disaster declaration, according to the study.
Twelve states include a potential set-aside or scoring incentive for a disaster recovery response. And, 13 states have disclaimers in their QAPs stating that, in the event of a natural disaster, the housing finance agency can disregard the set-aside and scoring in the QAP to allocate disaster recovery resistance.
The research is part of Freddie Mac’s Duty to Serve plan. It builds upon last year’s report, "Resiliency Efforts in Affordable Multifamily Housing," which examined the various public and private programs and initiatives designed to improve affordable housing resiliency.
