The low-slung apartment buildings that line the streets of Houston, Fort Worth, and other Lone Star cities are some of the cheapest affordable housing projects to build anywhere. Two-story jobbers in Texas cost a whole lot less to build with housing tax credits than affordable mid-rises in California or New England. Where land prices are higher, it’s more expensive to build affordable housing.
These are a few of the not-exactly-earth-shattering conclusions of a long-awaited report on the Low Income Housing Tax Credit program, the country’s main engine for generating new affordable housing. Released this week by the Government Accountability Office, the report finds that these housing tax credits, or LIHTCs, have financed some 50,000 affordable units every year since 2010. On average, affordable rental units built with tax credits in Texas cost two-and-a-half times less ($126,000) than the average in California ($326,000).
The GAO report, the third in a series on housing tax credits, reveals the ratio that affordable housing developers pay toward hard costs versus soft costs and price differentials from sea to shining sea. But it’s missing some key data about bedrock costs for affordable housing. And what the federal government can’t yet say about housing credits is revealing.
View Article