After year 15: Challenges to the preservation of housing financed with low‐income housing tax credits

The Low‐Income Housing Tax Credit, the nation's largest subsidy program for low‐income rental housing, has financed more than 1.4 million housing units since 1987. Like earlier federal programs that subsidized housing built by private owners, this program does not guarantee indefinite occupancy by low‐income households. This article examines the likelihood that tax credit housing will convert to market‐rate occupancy and the challenges confronting the long‐term physical viability of the housing if it is to remain affordable. The biggest threat to the long‐term viability of tax credit housing as a resource for low‐income households stems less from the expiration of income and/or rent restrictions and more from the need for major capital improvements. A relatively small segment of the inventory is likely to convert to market‐rate occupancy. Far more of this housing will continue to serve low‐income households but will need assistance to pay for essential renovations.