December 26, 2018 By: Christine Serlin
Opportunity Zones, income averaging, affordability crisis buzzwords for the year.
For the affordable housing industry, 2018 has been all about navigating the new environment post-tax reform. The year marked the first increase to the low-income housing tax credit (LIHTC) in over a decade, the anticipation of the new Opportunity Zone (OZ) incentive to spur investment in distressed communities, understanding the new income-averaging option for the LIHTC program, and the return of Fannie Mae and Freddie Mac to the tax credit investment market.
Affordable Housing Finance, with help from its Editorial Advisory Board members, counts down 10 notable news events for the industry in 2018.
1. Omnibus Housing Boost
Affordable housing programs were big winners as part of the $1.3 trillion omnibus spending plan agreed to by Congress in March. “The omnibus was good for LIHTC and appropriated housing,” says Bob Moss, principal and national director of governmental affairs for CohnReznick................Read More
November 15, 2018 By: Laura Calugar
Insufficient federal funding, low incomes and an aging population are some of the main factors that have contributed to many rural areas' shortage of affordable housing.
Examining census tracts within counties that are eligible for U.S. Department of Agriculture’s housing programs, Urban Institute researchers discovered that more than 150 counties ranked as having most-severe need for affordable housing units. The number represents 5 percent of eligible counties and roughly 7 percent of all eligible rural population in the country.
The figures look worrying: 38 percent of the researched counties are having moderately severe rental housing needs and 58 percent showed less-severe needs for affordable rental housing production. Compared to national averages, counties with most-severe need had high unemployment rates, were overcrowded and had lower shares of federally subsidized rental units. Roosevelt County in New Mexico turned out to have the most severe need for affordable rental housing production, meeting the high-need thresholds across six of the report’s indicators: Population growth, persistent poverty and unemployment, overcrowded households and severely cost-burdened households.
Demand for affordable rental housing in rural communities severely exceeds supply and the existing stock has aged significantly. Corianne Scally, senior research associate in the Metropolitan Housing and Communities Policy Center at the Urban Institute, told Multi-Housing News that it is very difficult to estimate the number of units needed nationwide to meet the current demand for rural housing due to frequent demographic and market changes. However, she confirmed that “(the) analysis of more general indicators still reveals many communities exhibiting characteristics of need, such as population growth, low rental vacancy rates and many renters paying more than half of their income for rent.”........................Read More
