The Low-Income Housing Tax Credit and Multifamily Bond Financing: A Comparison of State-Level Allocation Policies (2001)

Publication Date: September 2001

Publisher: Shimberg Center for Housing Studies, University of Florida

Author(s): Shimberg Center for Housing Studies

Research Area: Social conditions

Keywords: LIHTC; multifamily bond financing

Type: Report

Coverage: Washington Washington Texas Pennsylvania Pennsylvania North Carolina New York New York New Jersey Minnesota Michigan Massachusetts Maryland Maine Indiana Georgia Florida Colorado California Arizona

Abstract:

This paper examines state housing agencies' use of the Low Income Housing Tax Credit (LIHTC) and multifamily bond financing allocation processes to direct housing development toward high-need areas, serve certain populations, and encourage the fulfillment of other policy objectives. Findings are based on an examination of the tax credit and bond finance allocation processes in 20 states. The report begins with a brief description of state plans that guide the allocation of the LIHTC and multifamily bond financing. Next, it examines the processes by which states set priorities for the use of these resources. Third, it examines the use of housing needs assessments and other data collection in decision-making. Fourth, it lists the types of policy objectives that states seek to fulfill through their allocation of tax credits and bond financing. Finally, the paper discusses the types of systems that states have designed to ensure that the projects selected meet their policy objectives.