The low-income housing tax credit (LIHTC) program has been critical in producing and preserving affordable housing for the nation’s growing senior population.
There are more than 800,000 LIHTC homes with a head of household 62 or older, and the need will only grow in the years ahead. The number of older renters who are severely cost burdened is expected to rise by approximately 3 million by 2025, according to a new report by LeadingAge and the National Housing Trust.
In “Affordable Senior Housing: A Scan of State Housing Credit Allocation Policies,” the organizations detail how state housing finance agencies are using their 9% LIHTC programs to serve older adults. The analysis of state qualified allocation plans (QAPs), which determine how housing credits will be allocated, reveals that:
· Seven states set aside a portion of their housing credits specifically for affordable senior housing. For example, in its 2020 QAP, California established a goal of allocating 15% of its total credits to older adults;
· 27 states, including the District of Columbia, award points to projects specifically serving older adults. It’s the most common way for states to incentivize senior housing in their QAPs; and
· Three states—Arizona, Michigan, and Mississippi—provide a basis boost for projects serving older adults.
The report also finds that a number of states “provide points for the inclusion of certain development features or amenities that, while not specifically identified as serving older adults, likely benefit older adults regardless of whether the property is designated as affordable senior housing.”
These features and amenities may include service coordinators, health programming, and proximity to health care.
Read the report to learn how each state is prioritizing affordable senior housing in its QAP.
