The affordable housing crisis in the United States is at a tipping point. High housing cost burdens were driven by persistently high housing costs relative to income. In 2019, the median sales price of existing single-family homes rose faster than median household income for an eighth straight year. Harvard University’s State of the Nation’s Housing 2020 report, sponsored by Habitat for Humanity, outlines four key findings:
- persistent unaffordability
- growing racial disparities
- widespread housing insecurity
- major barriers to homeownership
The National Association of Home Builders stated, “The Low Income Housing Tax Credit is the most successful affordable rental housing production program in U.S. history. Since its inception, the program has produced and financed more than two million affordable apartments The LIHTC serves households making 60% or less of the area median income, with rents restricted so that households with this income pay 30% or less of their income towards rent.
Here in our home state of Georgia, the Housing Credit is the state’s main tool to create affordable housing for households that need it most – working families, veterans, people with special needs, seniors, teachers, nurses, firefighters and police. Nearly all affordable apartments built each year are financed through the Housing Credit. In Georgia, the Housing Credit has financed the development of over 150,000 homes, supported over 170,000 jobs, and generated over $16.4 billion in local income and $6.4 billion in tax revenues. By year 2020, affordable units to DCA’s affordable housing inventory, will bring the total inventory of units to over 100,000 units.
Our collective goal with our clients is to help fund affordable housing developments by providing tax equity capital. These projects benefit communities in and around the area, creating jobs, preventing crime, and significantly contributing to better health of low-income families resulting from an increase in disposable income.