{"669229":{"#nid":"669229","#data":{"type":"news","title":"Debunking Another Myth Surrounding Low-Income Housing Tax Credits","body":[{"value":"\u003Cp\u003EA new study from Georgia Tech\u2019s School of Public Policy debunks a common belief about the impact of affordable housing on neighborhood property values. The researchers, led by Assistant Professor Brian Y. An, found that developments funded by the Low-Income Housing Tax Credit (LIHTC) do not cause hidden harm to the value of some surrounding properties.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThis \u003Ca href=\u0022https:\/\/www.huduser.gov\/portal\/periodicals\/cityscape\/vol25num2\/article13.html\u0022 rel=\u0022noreferrer noopener\u0022 target=\u0022_blank\u0022\u003Estudy\u003C\/a\u003E, recently published in the U.S. Department of Housing and Urban Development (HUD) publication Cityscape, contradicts a widely held assumption among critics of the subsidy that widely documented increases in nearby property values accompanying LIHTC projects mask damage to other properties. The researchers found no such effect.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u201cThis research is significant as it challenges the stigma often associated with affordable housing,\u201d said \u003Ca href=\u0022https:\/\/iac.gatech.edu\/people\/person\/c9f0cadc-5bb4-5b6f-9eca-bd38a9233993\u0022\u003EAn\u003C\/a\u003E. \u201cThis pernicious fear of property value decline has been a major source of opposition to affordable housing projects in many communities.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThe federal tax credit is designed to encourage private investors to develop affordable housing for low-income households. To better understand its impacts, researchers consulted HUD data on LIHTC properties in Los Angeles, as well as proprietary data on home sales.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThey analyzed property values in neighborhoods before and after the introduction of affordable housing developments and compared the changes to those in similar neighborhoods without low-income housing development. Their results showed no significant decrease in property values following the establishment of these developments, regardless of the characteristics of the neighborhood or LIHTC project.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EIn fact, the research confirms previous studies showing that developments supported by the tax credit broadly increase nearby property values. After completion of mixed developments including both market-rate and subsidized units, surrounding property values rose by 5.4% compared to comparable neighborhoods without tax-subsidized development. Fully subsidized developments boosted property values by 3.2%, the researchers found.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u201cFrom a policy perspective, the key takeaway is that LIHTC developments, in addition to creating and preserving badly needed housing that is affordable to low-income households, consistently have positive effects on surrounding property values,\u201d the authors wrote in the paper. \u201cA \u2018bad\u2019 place for such properties to be developed does not exist, nor does a \u2018bad\u2019 type of LIHTC development exist. Regardless of the development\u2019s size or neighborhood in which it is placed into service, a LIHTC property is likely to have a positive spillover effect on its neighborhood.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThe authors noted that some of the conclusions could be specific to Los Angeles, which suffers from an extreme lack of affordable housing. They also noted that rising property values can be beneficial for homeowners, but often can push rental rates out of reach for many existing residents. The researchers are examining these issues in a follow-up study.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0022Factors Affecting Spillover Impacts of Low-Income Housing Tax Credit Developments: An Analysis of Los Angeles,\u201d was published in the July edition of Cityscape, a publication of the U.S. Department of Housing and Urban Development\u2019s Office of Policy Development and Research. It is available at \u003Ca href=\u0022https:\/\/www.huduser.gov\/portal\/periodicals\/cityscape\/vol25num2\/article13.html\u0022 rel=\u0022noreferrer noopener\u0022 target=\u0022_blank\u0022\u003Ehttps:\/\/www.huduser.gov\/portal\/periodicals\/cityscape\/vol25num2\/article13.html\u003C\/a\u003E.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EAn is one of seven co-authors on the paper, including Raphael W. Bostic, president of the Federal Reserve Bank of Atlanta.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThe study was funded by JP Morgan Chase \u0026amp; Co. JP Morgan Chase had no role in the research. One of the co-authors, Andrew Jakabovics, is an employee of Enterprise Community Partners \u2014 a firm with a subsidiary involved in low-income housing tax credits. The study\u0027s data, however, was independently sourced.\u003C\/p\u003E\r\n\r\n\u003Cp\u003EThe \u003Ca href=\u0022https:\/\/spp.gatech.edu\u0022\u003ESchool of Public Policy\u003C\/a\u003E is a unit of the \u003Ca href=\u0022https:\/\/iac.gatech.edu\u0022\u003EIvan Allen College of Liberal Arts\u003C\/a\u003E.\u003C\/p\u003E\r\n","summary":"","format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EHousing built using the federal Low Income Housing Tax Credit does not lower nearby property values, the study finds.\u003C\/p\u003E\r\n","format":"limited_html"}],"field_summary_sentence":[{"value":"Housing built using the federal Low Income Housing Tax Credit does not lower nearby property values, the study finds."}],"uid":"34600","created_gmt":"2023-08-29 13:49:18","changed_gmt":"2023-08-31 14:10:18","author":"mpearson34","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2023-08-29T00:00:00-04:00","iso_date":"2023-08-29T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"671517":{"id":"671517","type":"image","title":"A row of attached homes under construction","body":null,"created":"1693316964","gmt_created":"2023-08-29 13:49:24","changed":"1693423664","gmt_changed":"2023-08-30 19:27:44","alt":"A row of attached homes under construction","file":{"fid":"254599","name":"AdobeStock_88984587 (1).jpeg","image_path":"\/sites\/default\/files\/2023\/08\/29\/AdobeStock_88984587%20%281%29.jpeg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/2023\/08\/29\/AdobeStock_88984587%20%281%29.jpeg","mime":"image\/jpeg","size":4526873,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/2023\/08\/29\/AdobeStock_88984587%20%281%29.jpeg?itok=Qk9QMZpC"}},"650785":{"id":"650785","type":"image","title":"Brian An","body":null,"created":"1631744009","gmt_created":"2021-09-15 22:13:29","changed":"1631744009","gmt_changed":"2021-09-15 22:13:29","alt":"Brian An","file":{"fid":"246951","name":"Brian An AE2I3371-Edit-Edit.jpg","image_path":"\/sites\/default\/files\/images\/Brian%20An%20AE2I3371-Edit-Edit.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/Brian%20An%20AE2I3371-Edit-Edit.jpg","mime":"image\/jpeg","size":1569459,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/Brian%20An%20AE2I3371-Edit-Edit.jpg?itok=WlIEfBwW"}}},"media_ids":["671517","650785"],"groups":[{"id":"1188","name":"Research Horizons"},{"id":"1214","name":"News Room"}],"categories":[],"keywords":[{"id":"187915","name":"go-researchnews"}],"core_research_areas":[],"news_room_topics":[{"id":"71901","name":"Society and Culture"}],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:michael.pearson@iac.gatech.edu\u0022\u003EMichael Pearson\u003C\/a\u003E\u003Cbr \/\u003E\r\nIvan Allen College of Liberal Arts\u003Cbr \/\u003E\r\n\u0026nbsp;\u003C\/p\u003E\r\n","format":"limited_html"}],"email":["michael.pearson@iac.gatech.edu"],"slides":[],"orientation":[],"userdata":""}}}