The Congressional Settlement Bill has slightly boosted the Federal Low-Income Housing Tax Credit (LIHTC) and established permanent funding for the Opportunity Zone Program, but an article by Shelterforce Roshan Abraham argues that the budget is harmful to affordable housing.
Abraham notes that substantial cuts in laws for social programs such as Medicaid and Medicare will contribute to the housing crisis. “Tax laws are primarily because millions of American renters rely on the country’s major social security health programs, as well as reducing climate tax credits will lead to increased utility bills.”
Housing advocates say LIHTC doesn’t have the same tenant protection as other HUD programs, and often serves as an incentive for speculative developers and does not offer sufficient affordability.
Advocates say federal rental assistance and cuts to fair housing enforcement programs will drive more people homeless. The federal budget calls for a 29% cut in funding for public housing authorities managers to help find Section 8 voucher homes. “Given the strict requirements and continued challenges of the programme for voucher holders facing income-based discrimination, this would significantly slow down the ability of tenants to find homes.” The bill also eliminated the Fair Housing Initiative Program and put fair housing enforcement at risk.
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