Tax Credit Policies
Last week, Enterprise released its latest report on efforts to balance cost control with building quality and resident opportunity in affordable housing, Giving Due Credit: Balancing Priorities in State Low-Income Housing Tax Credit Allocation Policies. The report identifies leading approaches for advancing cost effectiveness while still developing and preserving affordable housing that is well-located, durable, sustainable, and connected to good schools, jobs, transit and health care. See the report’s coverage in NHC’s Open House Blog.
Let’s Talk About Rent
At a time when longtime homeowners are generally experiencing the benefits of growing equity and reduced mortgage payments from historically low rates, renters are struggling, according to an analysis by The Associated Press (AP). “They’re basically taking advantage of the changing economics of homeownership in ways that renters can’t,” said Enterprise’s Andrew Jakabovics. Renters accounted for all of the eight million-plus net households the U.S. added in the past decade, which has increased demand and driven up rents. Half of all renters are now considered cost-burdened (paying more than 30 percent of income on rent), compared with just 24 percent in 1960. (AP | ABC News, June 20) (ECP)
Make Room Campaign
Earlier this month, the Make Room campaign highlighted the story of Denver, Colorado’s Patty Leidy. In the spring, Leidy’s rent increased from $800 to $1,400, forcing her to move in with her 85-year-old mother. Leidy, 55, earns $1,500 per month before taxes and could not find an apartment that she could afford. She is grateful to live with her mother, but is now searching for a higher-paying job so she can have a home of her own again. Since 2010, rents in Denver have risen by 47 percent while wages are up only six percent. Learn more about Leidy and others like her who can’t afford the rent on the Make Room website. (ECP)