Tax Notes Talk

The Tax Provision Worsening the Affordable Housing Crisis

The Tax Notes investigation uncovers how a 1990s provision in the Low‑Income Housing Tax Credit (LIHTC) gives developers broad flexibility to convert or sell tax‑credit‑financed units, eroding the affordable housing stock. With Congress largely absent, enforcement has shifted to state housing agencies, leaving many tenants vulnerable to displacement. Interviews with former tenants, advocacy leaders, and legal experts illustrate the human toll and policy gaps. The series highlights the growing crisis as affordable units disappear faster than new construction can replace them.