Nestled among the greenbelts of suburban Maryland, Legacy at Twin Rivers is an unassuming apartment complex with a clean, modern design and pleasant landscaping that you might mistake for any new market-rate rental property in the area. That’s the point.
In an era when housing costs are skyrocketing, interest rates are rising and both renters and housing providers are under pressure to contain costs, the 153-unit complex features a fitness center, homework rooms, accessibility and a low carbon footprint, all at an affordable price.
The legacy of Twin Rivers is an example of the public-private partnership that is the hallmark of my organization, Corporate Community Partners, with a history of more than 40 years. In those four decades, we have created or preserved more than 1 million units of affordable housing. The driving force: A part of the tax code called the Low-Income Housing Tax Credit (LIHTC).
Established in the 1980s against the backdrop of a growing homelessness crisis (unlike today) and a national retreat from public housing, LIHTC reimagined the way we build affordable housing. Rather than publicly funded and operated housing, the program provides investors with federal tax credits to put money into affordable housing with a commitment to keep those homes affordable for at least 30 years.
Since 1986, LIHTC has built nearly 4 million units of affordable housing and serves approximately 9 million U.S. households. In many ways, it was a silent success. For those in affordable housing communities, it is widely recognized as a primary tool for producing and maintaining affordable housing. Communities like Legacy at Twin Rivers are integrated with their communities. They support mixed-income families. They demonstrate that when we leverage private markets for the public good, we can deliver both returns for investors and stable, affordable housing for families and people in need.
While providing housing for people at the lowest end of the income ladder has always been a challenge, today it is a broader and deeper crisis than it has been in generations. The country lacks 7.3 million units of affordable housing. Aside from zoning changes and building renovations, two ideas that have made headlines recently, the solution is simple: construction and preservation.
Unfortunately, the popular and bipartisan LIHTC has been cut in recent years due to congressional inaction. The legislative tax package, which passed the House in a broadly bipartisan vote of 357-70, has been stalled in the Senate amid partisan fights unrelated to the housing credit. While much of the legislation divides lawmakers along partisan lines, the bills underlying these housing provisions have the support of half of Congress, split evenly between Republicans and Democrats in the House and Senate.
Why is it still popular on both sides of the aisle? Housing credit serves nearly every community in the country, from rural to urban areas to tribal lands. While housing has always been a top concern in large coastal cities, in recent years we have seen the fastest rental growth on record – up around 30% since 2017. Boise, Raleigh and Roanoke, exurbs and suburbs. Now, this issue is on everyone’s radar in a way it hasn’t been in years, and LIHTC is a critical solution. Additionally, our research shows that building LIHTC-supported housing increases the value of neighboring homes. So much for NIMBYism.
The tax package currently awaiting a Senate vote would create an additional 200,000 affordable rentals over the next decade. Of course, this won’t be enough to close the gap, but combined with the various reforms we’re pursuing in California, Maryland, Florida, and Georgia, we may find a long-term solution to ensure affordability for all.
In the absence of comity between the parties on Capitol Hill, the LIHTC plan is a win that lawmakers can deliver to their districts and will benefit the people they serve long into the future.
Ayrianne Parks is senior director of policy initiatives at Enterprise Community Partners, a national housing nonprofit, and co-chair of the ACTION Campaign. Enterprise is a member of the Alliance for Underserved Mortgage Markets.
This column does not necessarily reflect the opinions of the HousingWire editorial staff and its owners.
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