Today , a comprehensive account on the impact of the Low - Income Housing Tax Credit on rural residential area was released , which indicates rural families are gaining entree to low-priced trapping . The report , “ The Low - Income Housing Tax Credit : subdue barrier to Affordable Housing in Rural America , ” was prepared by Rapoza Associates , a lobby and government activity dealings firm particularize in Union community development policy , in partnership with five member of the National Rural Housing Coalition . The in - depth analysis of the impact of LIHTC in rural communities add up at a metre when members of Congress are drilling down on the theme of tax reform .
“ This theme , which includes 37 case bailiwick , tender a wide - ranging look at how the Low - Income Housing Tax Credit helps rural communities overcome high rates of poverty and substandard caparison to furnish access to affordable housing in our nation ’s rural community , ” says Peter Carey , NRHC display board member and Chief Executive and chief operating officer of Self - Help Enterprises in Visalia , Calif. , an organisation dedicated to self - assistance lodging , sewer and water supply growing , and trapping rehab for farm laborer and grim - income family . “ As our country looks for ways to improve our taxation policy , we need to keep programs that work . The data point and result in this report certify the effectualness of LIHTC , which we hope will help inform policymakers as they move with taxation reform cause . ”
Low - Income Housing Tax Credit is the declamatory author of Union housing financial backing and is the chief creature used by rural community to get the better of barrier to affordable letting lodging . Today ’s report notes that more than 7.3 million rural families live in trapping with at least one major affordability , quality or crowd issue . The report go on to document the succeeder of the credit in preserving and developing more than 270,000 rental unit since its inception in 1986 . As a effect of its body process in rural community , the revenue enhancement credit has created 1.15 million job , give $ 86.9 billion in local income , and increase state and local tax revenue by $ 67.8 billion .
Overall , LIHTC accounts for about 50 per centum of all NRHC financing to construct or preserve low-cost rental housing in rural America .
“ LIHTC has generated billions of dollar mark in private - sector investing to scramble rural communities and must continue to be a centerpiece of Union tax and housing policy , ” says Bob Rapoza , president of Rapoza Associates and a 30 - year vet of housing policy who assist as the NRHC executive secretary . “ The theme shows that LIHTC helps improve the calibre and quantity of low-cost lodging in pocket-sized towns and husbandry community across America . ”
Since 1986 , LIHTC has generated nigh $ 100 billion of investments into rural and urban community alike by further private - public partnerships . Under the programme , housing developers kick upstairs the capital needed to build or preserve affordable renting housing by selling the taxation credit to investors who can then claim the credit to offset their federal tax liability .
