Preserving Decent Affordable Housing in Detroit: Low-income Housing Tax Credit Projects at Year 15
This project supports efforts to preserve decent affordable housing developed under the Low-Income Housing Tax Credit (LIHTC) program that are facing transition of ownership and financial restructuring at the end of 15 years of affordability. Working with partners that include city officials and key stakeholders in the LIHTC industry, we examine the challenges that LIHTC projects in Detroit face at year 15 and propose strategies that can help address those challenges. First, we examine what has happened to older LIHTC projects that have reached year 15 and are no longer under IRS monitoring. Second, for projects that have just reached or are reaching year 15 from 2016 to 2022, we use audits to assess financial conditions and identify factors that affect financial health. About half of the city’s total LIHTC housing stock are reaching year 15 from 2016 to 2022. Third, we compile promising practices from other states and cities in addressing the year-15 transition and identify strategies that are appropriate for Detroit. Finally, we draw broader lessons on how to preserve LIHTC projects in the longer term from a program perspective based on what we have learned from the Detroit experience.
Community Partners Organizations: Community Development Advocates of Detroit, Local Initiatives Support Corporation, Cinnaire, IFF, Southwest Housing Solutions, Detroit Department of Housing and Revitalization