The Impact of the Low-Income Housing Tax Credit and Its Role in the Future of Affordable Housing

Author

Sophia Yates Smith

Date of Award

2013

Document Type

Undergraduate Thesis

Department

Accountancy

First Advisor

Tonya Flesher

Relational Format

Dissertation/Thesis

Abstract

The purpose of this paper is to study the evolution and goals of the government in providing low-income housing as well as the means taken to achieve those goals in order to understand the current system. The ever-changing nature of the political, social and economic landscape of the country dictates that the role of government in providing lowhousing must adapt to the times. This paper will address questions about the future of the program such as the following. Should the federal government continue finance low-income housing through indirect subsidies financed through the tax code or were the previous direct subsidies a more efficient and effective system? In the future should the federal government encourage the current trend of developers building sustainable communities by tying housing policy to that of energy and transportation? Should the federal government continue their involvement in low-income housing or should it all be delegated to the states? Through research of past and current legislation and conversing with industry professionals I have come to the conclusion that the government is providing a necessary social service of affordable housing, especially through the tax code and their use of the Low-Income Housing Tax Credit (LIHTC). By breaking down barriers and facilitating coordination between the LIHTC program and complementary departments on the federal level, the benefits on the local level will be maximized for the lowest cost. This paper views affordable housing as an opportunity for people who have come upon hard times to be able to provide for themselves and their families and for the government and society to invest in communities so that they will one day do well enough to give back to the government and society.

Recommended Citation

Smith, Sophia Yates, "The Impact of the Low-Income Housing Tax Credit and Its Role in the Future of Affordable Housing" (2013). Honors Theses. 2126.
https://egrove.olemiss.edu/hon_thesis/2126

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