Affordable Housing in a Down Cycle: International Solutions for Difficult Times
In its current state, the Low Income Housing Tax Credit (LIHTC) alone cannot meet the outsized demand for subsidized housing in California. On average, the LIHTC produces less than 20,000 units in the state on an annual basis. Alternatives to LIHTC examine how mixed-income and middle-income housing could be produced with little to no subsidies. Within the existing policy environment, there are a few circumstances in which affordable housing could be developed without a subsidy. More specifically, mixed-income developments, low-interest financing programs, programs that facilitate expedited approval tracks, and density incentive programs all play a crucial role in making these projects feasible.
Given the immense and growing need for affordable housing across California – and the relatively low number of new units produced each year – innovative policies, financing mechanisms and other strategies must be developed.
