Assessing the Role of TIF and LIHTC on Affordable Housing Development(2018)
The goal of this paper is to understand the impact of Tax Incremental Financing (TIF) and Low Income Housing Tax Credits (LIHTCs) in an equilibrium model of affordable housing development. Developers in different jurisdictions compete to sell their LIHTCs to a corporation, and LIHTC prices are determined in equilibrium. In this setting, when a jurisdiction decides to provide TIF to its developer, housing becomes more affordable, but both the construction costs and the leverage ratio of the project may increase with respect to a project without TIF money. In essence, TIF ameliorates the demand for LIHTC equity and makes equity less expensive.
Publication DateSeptember, 2018
Citation InformationJaime Luque. "Assessing the Role of TIF and LIHTC on Affordable Housing Development" (2018)
Available at: http://works.bepress.com/luque/36/
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