Cap Set on LIHTC Rent Growth

Housing organizations criticize the move, saying it will deter new production.

Several housing organizations have raised concerns about the Department of Housing and Urban Development’s annual income determination for low-income housing tax credit (LIHTC) properties, saying the new calculations make it tougher for some residents and investors.

“Unfortunately, the methodology changes announced today pick winners and losers among individuals receiving federal rental assistance,” say the groups. “While the changes may result in potentially smaller rent increases for some tenants, it will also mean fewer tenants will qualify for LIHTC-funded and other federally supported housing.

The April 2 statement is signed by 10 organizations, including the National Multifamily Housing Council, Council for Affordable and Rural Housing, National Leased Housing Association, and the National Association of Home Builders.