"Low Income" Housing Tax Credits and "Affordability"-

"Low Income" Housing Tax Credits and "Affordability"- Info Bull. #96, 10/05     


After Katrina struck, Texas announced it had 7,000 VACANT low-income
housing tax credit (LIHTC) units available. That is a lot of vacant
housing units.  Texans started asking why had Texas not offered them to
low income disabled Texans before Katrina? How long were they vacant? 

This triggered an informal discussion among a number of disability
advocates who were asked if they knew the approximate number of LIHTC
units in their States and how many were vacant?  No one knew either
answer!  Below, by State, are the number of LIHTC units.  (These are from
HUD and we believe they are FEWER than actually exist in your State.)

ACTIONS ADVOCATES SHOULD TAKE:

1.  Disability advocates should be in communication with your State's
Housing Finance Agency to obtain (1) the city and street location of LIHTC
units in existence, (2) the name and telephone number of the LIHTC
developer, (3) how many units are vacant, (4) how many and which are
accessible, and (5) how many of the accessible units have disabled persons
actually residing in them.  Without this information, disability advocates
are not able to access a large number of units. 

2.  A number of persons have correctly pointed out that the "low income"
in LIHTC does not include persons with disabilities whose income is SSI
(or low SSDI).  That is, persons on SSI who do not have a Section8 Housing
Voucher are normally TOO POOR to be able to afford the rents in the LIHTC. 
The reason for this is that the LIHTC federal program requires a certain
number of LIHTC units be rented to persons whose incomes are either at or
below the 50-60% of the area median income.  Rents (and therefore income
for the developers) are based on a household's income.  Because SSI is at
about 18-20% of the area median income, far lower than 50-60%, persons
with disabilities cannot afford the rents with only an SSI income. 

3.  Here are two handles disability advocates could use to overcome the
SSI "TOO POOR" barrier to LIHTC units. 

First, no developer who receives LIHTC can discriminate against persons
who have a Section 8 Housing Voucher. Advocates for disabled persons
should find out the location/developer who received LIHTC in the past For
these EXISTING units that are vacant, advocates should inform persons with
disabilities who have Housing Vouchers to apply for those LIHTC units. 
Housing Vouchers are a necessary rent supplement for persons on SSI to be
able to afford LIHTC units.  Disability advocates should also know which
developers are awarded LIHTC for projects to be constructed in the near
FUTURE.  Once your Housing Finance Agency announces the developers awarded
LIHTC for future projects, advocates should contact the developers so that
persons with Section 8 Housing Vouchers are first in line for the units
that will be constructed.. 

Second, LIHTC are competitive.  Developers bid for them and very much want
them!  Disability advocates should begin urging your Housing Finance
Agency to award extra points in the bidding competition to developers who
agree that a certain percent of the accessible units will be rented to
persons whose income is at the SSI level.  This will ensure some SSI
recipients who do not have a Housing Voucher can afford LIHTC units solely
with their SSI income. Advocates should also urge the Housing Finance
Agency to award additional points developers who agree to increase the
percent of accessible units.  These two handles are being used in
Pennsylvania. 

HUD Reported State Totals of LIHTC:

Alabama            11,889      
Alaska              1,910   
Arizona            14,056  
Arkansas           10,896  
California        100,900 
Colorado           12,741  
Connecticut         8,078           
Delaware            3,681    
D. C.               6,718         
Florida            81,123
Georgia            30,371
Hawaii              2,641                      
Idaho               5,120   
Illinois           32,811          
Indiana            16,411                     
Iowa               12,804                    
Kansas             14,807           
Kentucky           10,378
Louisiana          23,544            
Maine               4,794
Maryland           18,873             
Massachus          23,164
Michigan           42,195
Minnesota          11,916
Mississippi        11,677     
Missouri           32,242
Montana             3,224
Nebraska            7,462
Nevada              6,661
New Hampshire       3,729
New Jersey         13,034
New Mexico          8,167  
New York           36,174
North Carolina     29,392
North Dakota        2,885
Ohio               51,262    
Oklahoma           15,886
Oregon             19,204
Pennsylvania       27,623
Rhode Island        4,528
South Carolina     13,519
South Dakota        4,326
Tennessee          22,413
Texas              88,609  
Utah                7,268
Vermont             3,468
Virginia           46,843                      
Washington         31,842
West Virginia       5,481
Wisconsin          21,279            
Wyoming             1,363                  

    Steve Gold, The Disability Odyssey continues

Back issues of other Information Bulletins are available online at 
http://www.stevegoldada.com 
with a searchable Archive at this site divided into different subjects.  To 
contact Steve Gold directly, write to stevegoldada@cs.com     

--
Steve Gold, The Disability Odyssey continues

Back issues of other Information Bulletins are available online at
http://www.stevegoldada.com

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