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Home » NAHE Initiative to Raise Awareness of Problems with LIHTC Income Restrictions

NAHE Initiative to Raise Awareness of Problems with LIHTC Income Restrictions

Oct 5, 2009

The Nebraska Investment Finance Authority (NIFA) is spearheading the National Affordable Housing Equity (NAHE) Initiative to raise awareness about the problems caused by outdated restrictions on the low-income housing tax credit (LIHTC) program. Specifically, the initiative seeks to re-calibrate the national two-person household income limit and passive loss limit.

The NAHE Initiative is asking a change in the national income limit to “at least” the two-person minimum wage ($30,160), which became effective July 24, 2009. The LIHTC program does not work for two-earner families in Nebraska, states a presentation that is available on the NIFA Web site (www.nifa.org). In approximately 86 of that state’s 93 counties, the two-person minimum wage equivalent is greater than the two-person LIHTC income limit. And the same is true for 77 percent of all the counties in the U.S. and in 80 percent of the states.

As a result of low LIHTC income limits, more households are driven to higher limit communities and states.

The NAHE Initiative would like the governors in the U.S. to work with Congress for reasonable income limits. To see a county-by-county analysis in each state, go to http://tiny.cc/LIHTCHousingEquality. For information about the initiative, contact Larry Jablonski at (402) 434-3917 or larry.jablonski@nifa.org.

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