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Low Income Housting Tax Credit’s 50-50 Outlook
Donna Kimura / AFFORDABLE HOUSING FINANCE / January 18, 2013
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The low-income housing tax credit (LIHTC) has less than a 50 percent chance of survival if the affordable housing industry does nothing, said Terri Ludwig, president and CEO of Enterprise Community Partners.
Ludwig sounded the alarm to several hundred developers attending the AHF Live conference in Chicago.
Others have warned that the mighty LIHTC could be eliminated as Congress sets its eyes on tax reform, but Ludwig went further and laid down tough odds for the industry to consider.
She no doubt meant her remarks to be a call to arms for the affordablehousing industry, but that doesn’t mean her 50-50 bet was an overstatement.
Enterprise is well connected to what’s happening. What’s more is that one Washington insider said afterward that Ludwig’s assessment is on the mark.
Throughout the conference, developers were urged to show their LIHTC developments to their Congress members to generate support for the 26-year program, which could be tossed out with all other tax credits.
It is also critical to let the lawmakers know how important the housing credit is to producing jobs, especially during the economic downturn. The National Association of Home Builders estimates that a typical 100-unit LIHTC development generates about 122 local jobs, $7.9 million in local income, and $827,000 million in taxes and other revenue for local governments in the first year.