Affordable Housing and the Role of the Low Income Housing Tax Credit Program : A Contemporary Assessment

This paper evaluates the Low Income Housing Tax Credit (LIHTC) program and suggests methods for improvement, concluding that the current program does not adequately meet the needs of low and especially the lowest income households, although it has the potential to do so. Part II explores the current LIHTC its main features, advantages and disadvantages. Part III addresses other issues related to the evaluation of the LIHTC. These issues concern recent developments in the wider U.S. affordable housing policy, the use of supply compared to demand tax subsidies in this area, and the matter of neighborhood revitalization. Part IV suggests merging new housing initiatives with a slightly revised form of the current tax credit provision and limiting the mortgage deduction allowed under the Code to promote economic efficiency and allocate more funds for low-income households