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Expiring Tax Breaks Reduce Inventory of Low-Income Apartments

Washington, DC has High Rate of Expirations

By Dave Sorter | Monday, May 22, 2017

 

The expiration of tax breaks established by the Low Income Housing Tax Credit (LIHTC) program is exacerbating a shortage of low-income apartments in many metros nationwide.

The tax credit expires after 15 years. If it is not extended by the U.S. Department of Housing and Urban Development, these affordable units could return to market price.

Bill Kitchens, a RealPage analyst, writes that an estimated 11.5% of Washington, DC LIHTC units expired at the end of 2016, the highest rate in the nation. Nationally across major markets, the rate was 5.4%. Another 25.1% of LIHTC units in the Washington apartment market could expire from 2017-2020. 

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Dave Sorter

Dave Sorter

Journalist

Dave Sorter is an award-winning journalist who spent 30 years as a newspaper reporter and editor before joining Axiometrics. He oversees all Axio blogs and newsletters and serves as senior editor of all Axio publications.

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