Problem Summary

The Federal Low Income Housing Tax Credit Program funds are allocated by the state of Texas. Data shows the current allocation formula groups all subsidized housing in a few low-income housing tracks. This contributes to concentrated pockets of poverty in urban areas.

This issue relates to interim charges #1 and #5 of of the House Committee on Urban Affairs. The interim report and findings may be found here

Proposed Solutions

1) Restructure the state LIHTC Qualified Allocation Plan
The interim report states: (at page 49)
"... TDHCA, BRB and the legislature should consider adding provisions to the QAP and the bond rules that give significant point scoring and/or set¬aside of credits for affirmatively furthering assimilation outside of impacted areas."

2) Reduce opportunity for NIMBY-ism in allocation process
The interim report states: (at page 49)
..."Solution 5.2 The notification, signage, political support scoring and neighborhood organization scoring provisions should be eliminated. These provisions facilitate NIMBY attitudes of suburban homeowners and officials and as such they have no place in funding decisions for affordable housing."

3) Increase role of mixed-income units in developments
The interim report states: (at page 15)
"Furthermore, TDHCA needs to focus efforts on de-concentration policies in the QAP. Mixed-income units should be encouraged by receiving more points in the scoring criteria."

Additional Links

Wikipedia "Low-Income Housing Tax Credit"
The Poverty Concentration Implications of Housing Subsidies
Poverty & Race Research Action Council October 2006, "Building Opportunity: Civil Rights Best Practices in the Low Income Housing Tax Credit Program"