Why 230,000 affordable housing units may never get built

January 19, 2018                                  By:  The Real Deal

Under new GOP tax law, low-income housing tax credits have less value

A rendering of the Peninsula (credit: WXY Architecture + Urban Design)

Even with private activity bonds intact, the new Republican tax law could cut the growth of subsidized affordable housing by more than 230,000 homes in the next 10 years.

The tax plan reduces the tax rate for corporations from 35 to 21 percent, which in turn, lowers the value of low-income housing tax credits, the New York Times reported. The reduction would shave roughly 235,000 homes from new supply of affordable housing across the U.S. over the next decade, according to a report by a national accounting firm, Novogradac & Company......Read More