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Low income housing credit assignment...

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ICA #7 Daniel Kohen, Vineet Kallanagowdar, James Bobek, James Wohlgemuth

1.

What is the low income housing tax credit (LIHTC) program (called “lie-tech”)? What are public-private partnerships and how does this work within the low income housing tax credit (LIHTC) program? Explain briefly.

This program basically allows low-income families a place to live, and takes away some of the tax burden that they face by giving them a tax credit working like a subsidy. The partnerships that occur are between the government and private corporations in which the government gives money to the private corporations to build the housing facilities – allowing the private corporations to own them. 2.

What are some of the positive aspects of the program (as discussed in the film "Poverty, Politics, and Profit”)? What are some of the criticisms?

Positives include giving low-income families a place to live, for minimal amounts. Negatives of this include the fact that it is easy for private corporations to steal money out of the program and not use it to build the amount of houses they say they will. 3.

Why are program participants (e.g., bankers, investors, developers, and program supporters) advocating for increasing the amount of LIHTC housing developments outside of lowincome neighborhoods?

They are advocating this because they realize that the best way to get people out of poverty is to relocate them to neighborhoods that are more high-end with more job opportunities and resources available there. So by building more LIHTC housing developments outside of low-income areas, people will have more opportunities....