NCHFA Report Summarizes Impact of LIHTC in North Carolina
According to a recent report issued by the North Carolina Housing Finance Agency, the LIHTC has created $75 billion in property value, $923 million in tax revenue, and 137,000 jobs in North Carolina over the history of the program. The LIHTC has financed 83,000 apartments in the state, including 35,600 in rural areas.
The report also highlights public health care savings in North Carolina. Affordable housing combined with supportive services for tenants can generate significant public health care savings. In North Carolina, LIHTC sites are required to participate in the Targeting Program by setting aside 10-20 percent of units for people with disabilities. Local service agencies provide access to supports and services, such as health care or case management, to tenants of Targeted Units. According to the report, research has found that living in affordable housing coupled with support services lowers the medical expenses of tenants who are elderly or have disabilities by an average of $1,000 per year. For tenants with intensive services needs, health care cost savings are even higher, around $6,000 per year.
In North Carolina, the LIHTC saves up to $3 in health care dollars for every $1 invested over the life of the program. Because Targeted Unit tenants have very low incomes and receive public disability benefits, their health care costs are typically paid by taxpayer dollars. Based on research on comparable programs, the 3,500 households who currently occupy Targeted Units could save taxpayers between $3.5 and $21 million in public health care dollars each year.