Real Estate Development
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State and Local Preservation ResourcesAt one time, the federal government was the sole decision-maker in how to allocate resources for affordable housing. That time has long since passed. For at least a decade, the task of preserving existing affordable rental housing has increasingly come to rest on the shoulders of state or local government officials who now direct the allocation of billions of dollars towards both new and existing affordable housing.
For the last 8 years, the National Housing Trust has reviewed Low Income Housing Tax Credit (LIHTC) policies and practices and other preservation programs to learn how state policymakers are approaching the challenge of preserving affordable rental housing. The results of this research are below:
Preservation Incentives in state Qualified Allocation Plans (which govern the deployment of LIHTCs):
|Click on the map to see how states have deployed their 9% tax credits to preserve affordability. |
4% Tax Credits for Preservation: Many states are able to use private activity bonds and 4% tax credits to save a significant amount of affordable housing, depending on local market conditions.
- 45 state housing agencies incentivize preservation in their 9% tax credit program;
- 16 states set aside a portion of their 9% tax credit allocation explicitly for preservation properties;
- 4 states direct a 30% basis boost towards preservation properties (IN, MI, MO, OR).
Sustainable Communities, Green & Proximity to Transit: State housing agencies prioritize affordable housing practices that contribute to sustainable communities through the creation of energy efficient housing close to public transit.
Other State Preservation Policies & Programs:
- Every state incentivizes green building practices and energy efficiency;
- Some states have developed separate and appropriate green building standards for existing affordable housing and newly constructed properties by using third party standards, developing their own standards or some combination of those approaches (for examples of various approaches, see CO, MN, MT, OR, PA, TX);
- 32 states provide an incentive for proximity to transit in their tax credit programs, with 5 states (MO, MS, OR, TX, UT) directing a basis boost for properties located near transit.
- At least 30 state housing trust funds support affordable housing preservation;
- Some states have created public-private funds for pre-development and acquisition;
states have undertaken data collection and analysis that help them to
identify "at risk" affordable housing and target resources;
- Program coordination efforts that breakdown agency silos and align program requirements are underway in many states.
Click on the state below for a list of state and local affordable housing preservation resources:
This is a work-in-progress and does
not necessarily reflect the depth of any one initiative or the breadth
of initiatives around the country.