Research Analysis Identifies Major Beneficiaries of LIHTC Program
A new analysis of the LIHTC program by CBRE Affordable Housing Research Services shows that the program is benefiting those most in need of affordable housing, namely largely families with children and seniors with extremely low incomes. The data was the result of the 2008 Housing and Economic Recovery Act (HERA), which required that each state housing finance agency (HFA) administering the LIHTC program provide HUD with annual demographic and economic information on tenants in rent-restricted LIHTC units. Last fall, HUD released its third public report on the information received through Dec. 31, 2014, under the HERA mandate.
Median household income of LIHTC tenants in 2014 was substantially lower than the country as a whole. According to the Census Bureau, the median household income in the U.S. in 2014 was $53,657. However, for LIHTC renters, the 2014 median household income was only $17,152, just 32 percent of the national median income. Additionally, 58.4 percent of the reported median LIHTC household income was less than $20,000. Alaska reported the highest median household income at $32,965 while Puerto Rico had the lowest at $5,492. Comparison of household income and applicable Area Median Gross Income (AMGI) found that nearly half of all LIHTC renters in 2014 earned 30 percent or less of the AMGI.