Many of the worst effects of the tax bill President Trump signed in December could take years to emerge. But the damage to the federal tax credit program that finances nearly all affordable housing built in America is already painfully evident. Unless Congress rescues this crucial program, a quarter million fewer affordable units will be built over the next 10 years, deepening an already serious crisis.
The federal low-income housing tax credit, created in 1986, allows companies to reduce their tax liabilities by investing in housing for some of the nation’s neediest families and individuals, many of them seniors, veterans and people with disabilities. The program has produced roughly three million rental units since its inception, but has fallen far short of the growing demand for affordable housing.