The Harvard Joint Center, with help from the What Works Collaborative, has published a new report entitled, “The Disruption of the Low-Income Housing Tax Credit Program: Causes, Consequences, Responses, and Proposed Correctives.” The report assesses the effects of the economic downturn on the Low-Income Housing Tax Credit (LIHTC) Program, identifies root causes of the program’s disruption, and discusses the effectiveness to date of the Tax Credit Assistance Program (TCAP) and Tax Credit Exchange Program, two “stopgap” programs created by the American Recovery and Reinvestment Act to help address the absence of investor capital. Further, the study examines a number of proposed short- and long-term policy solutions aimed at expanding the capacity of current investors and broadening the base of potential new investors. Read More…
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