ProPublica investigation: Federal low-income housing tax credit funds developments no cheaper than market rate
By
Tony Schick
Summary
This ProPublica investigation examines how the Low-Income Housing Tax Credit (LIHTC), a $15 billion federal program intended to create affordable housing, often fails to deliver on its promise. The program provides tax credits to developers who build low-income housing, but in many cases, the resulting apartments are no cheaper than market-rate units. The article focuses on Portland, Oregon, where despite billions poured into the program, thousands remain homeless. It reveals systemic issues: developers can charge rents that are unaffordable for the poorest residents, the program lacks meaningful oversight, and it often subsidizes luxury-adjacent developments rather than truly affordable homes. The piece traces the program's history, its political popularity across both parties, and the perverse incentives that have led to its shortcomings.
Source
bskyProPublica investigation: Federal low-income housing tax credit funds developments no cheaper than market ratesalon.comKey quotes
· 5 pulled'The program is not working for the people who need it the most,' said one housing advocate.
'We're spending billions of dollars and not getting the results we need,' said a former HUD official.
'Developers are building housing that is nominally 'affordable' but in practice is out of reach for the lowest-income families,' the investigation found.
'The tax credit has become a subsidy for market-rate housing disguised as affordable housing,' one critic said.
'On any given night, thousands of people sleep on the streets in Portland, Oregon. They seek shelter in tents, bushes and overpasses in a city that has struggled with one of the worst housing crises.'
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