Press: Affordable Housing: Who Will Fill the Funding Gap?
A recent piece in Locavesting about Affordable housing
Affordable housing development has been disrupted by new tax reform legislation, leaving a void in funding. New financing tools are needed for fill the gap.
The Section 42 Housing Tax Credit Program (LIHTC) will be significantly impacted by the changes to the tax code. These credits encourage affordable housing and have funded over three million affordable housing units since 1986 in every state across the US in both urban and rural areas.
Buying a passive Housing Tax Credit has traditionally been the safest and most profitable way to make an investment in local disadvantaged communities. The credits are popular with financial institutions, major corporations in the financial field and banks. Housing Tax Credits are typically bought to both offset future corporate tax liability and satisfy CRA credits from the Community Reinvestment Act through a limited partnership interest. Read the full story here