Release Date: November 10, 2009
For immediate release
The Federal Reserve Board on Tuesday announced the availability of a collection of brief articles that examine ways to improve the availability of housing options for low-income renters.
The publication, commissioned in conjunction with the Community Affairs staff at the Federal Reserve Bank of St. Louis, focuses on opportunities to strengthen the Low Income Housing Tax Credit (LIHTC) program. Since its creation in 1986, this program has been a major source of capital for the development of rental housing. However, the recent economic downturn has significantly reduced investor interest in this tax credit.
"Innovative Ideas for Revitalizing the LIHTC Market" contains six articles by practitioners and experts. Each author presents an idea for bolstering the LIHTC market. Ideas range from policy changes to the creation of more-sophisticated financial products that would attract additional investors.
The Federal Reserve System has long had an interest in the LIHTC as a means for fostering economic stability and opportunity in low-income communities. Adverse conditions in the U.S. housing and mortgage markets underscore the importance of producing and rehabilitating affordable rental units--not only to provide homes for families, but also to help stabilize neighborhoods.
The publication is available online: Innovative Ideas for Revitalizing the LIHTC Market (981 KB PDF).