TY - JOUR
T1 - Poverty concentration and the Low Income Housing Tax Credit
T2 - Effects of siting and tenant composition
AU - Ellen, Ingrid G.
AU - Horn, Keren M.
AU - O'Regan, Katherine M.
N1 - Funding Information:
We would like to thank the Open Society Foundation for their generous support of this research. We would also like to thank Yiwen Kuai for his excellent research assistance.
Publisher Copyright:
© 2016
PY - 2016/12/1
Y1 - 2016/12/1
N2 - New evidence on the effects of growing up in neighborhoods of concentrated poverty has heightened policy interest in understanding the role housing programs may play in shaping the distribution of poverty. In particular, as the nation's largest source of funding for the construction of affordable rental housing, the Low Income Housing Tax Credit (LIHTC) could play a critical role in shaping the distribution of poverty. This paper examines whether the LIHTC affects the concentration of poverty by examining who lives in tax credit developments in different neighborhoods, and how neighborhoods and metropolitan areas change after LIHTC developments are built. Through assessing both the effects of siting and tenant composition, we find little evidence that the LIHTC is increasing the concentration of poverty – and we find some evidence that it is reducing poverty rates in high-poverty neighborhoods. We also make suggestions for states who want to use LIHTC to do more to deconcentrate poverty.
AB - New evidence on the effects of growing up in neighborhoods of concentrated poverty has heightened policy interest in understanding the role housing programs may play in shaping the distribution of poverty. In particular, as the nation's largest source of funding for the construction of affordable rental housing, the Low Income Housing Tax Credit (LIHTC) could play a critical role in shaping the distribution of poverty. This paper examines whether the LIHTC affects the concentration of poverty by examining who lives in tax credit developments in different neighborhoods, and how neighborhoods and metropolitan areas change after LIHTC developments are built. Through assessing both the effects of siting and tenant composition, we find little evidence that the LIHTC is increasing the concentration of poverty – and we find some evidence that it is reducing poverty rates in high-poverty neighborhoods. We also make suggestions for states who want to use LIHTC to do more to deconcentrate poverty.
KW - Housing policy
KW - Low income housing tax credit
KW - Poverty concentration
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U2 - 10.1016/j.jhe.2016.08.001
DO - 10.1016/j.jhe.2016.08.001
M3 - Article
AN - SCOPUS:84984616665
SN - 1051-1377
VL - 34
SP - 49
EP - 59
JO - Journal of Housing Economics
JF - Journal of Housing Economics
ER -