Freddie Mac Multifamily is releasing a series of reports to highlight the opportunities and challenges of providing affordable multifamily housing in underserved markets. Two previous reports examined the use of Low Income Housing Tax Credits (LIHTCs) in Rural Middle Appalachia and in Indian Areas (see Memo, 11/5). Three additional reports released the week of November 5 are: “Mixed-Income Housing in Areas of Concentrated Poverty,” “Affordable Housing in Higher-Opportunity Areas,” and “Opportunity Incentives in LIHTC Qualified Allocation Plans.”
“Mixed-Income Housing in Areas of Concentrated Poverty” examines the demographic, economic, and housing characteristics of areas of concentrated poverty. The report suggests these areas are in need of quality affordable housing, but programs that provide only affordable housing may not be the optimal solution since they can continue to concentrate poverty in these areas. Freddie Mac plans to release two future studies to look at the opportunities and challenges of mixed-income housing in these communities.
“Affordable Housing in Higher-Opportunity Areas” examines the current state of affordable housing in areas of higher opportunity. Seven percent of subsidized affordable multifamily housing properties are located in these areas. A number of challenges to affordable housing development exist in high-opportunity areas, like zoning laws, local opposition, high costs, lack of buildable land, and limited federal and state housing subsidies.
“Opportunity Incentives in LIHTC Qualified Allocation Plans” examines incentives states include in their Qualified Allocation Plans (QAPs) to encourage development of affordable housing in higher opportunity areas. QAPs outline states’ policies and priorities that impact the type and location of affordable housing developed with the LIHTC program. The report analyzes the QAPs of all 50 states and the District of Columbia to highlight the commonalities and differences in their definitions of opportunity and the extent to which incentives are used.
The full series of reports is available at: https://bit.ly/2Du8pI4