Rental Housing: Inefficiencies From Combining Moderate Rehabilitation and Tax Credit Subsidies
RCED-90-168
Published: Jun 19, 1990. Publicly Released: Jun 29, 1990.
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Highlights
Pursuant to a congressional request, GAO provided information on the financial implications of combining subsidies under the Department of Housing and Urban Development's (HUD) Moderate Rehabilitation Program and the Department of the Treasury's Low-Income Housing Tax Credit Program.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider restricting the use of tax credits generally to areas where vacancy rates are low for suitable units renting at or below the area's fair market rents. Congress could further require that any deviation from this policy by a state credit allocation agency be documented and subject to review by an authorized representative of the federal or state government. |
Closed – Implemented
|
The Low-Income Tax Credit Program was reauthorized for 18 months through December 1993. States are now required to develop tax credit allocation plans to include priorities for targeting the credits. State allocation plans developed in 1991 reflect this requirement and provide a basis for any future evaluation of the extent this alternative action satisfies the recommendation. |
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Topics
Construction grantsFederal aid for housingFinancial analysisHousing repairsLow income housingMortgage loansMortgage programsRent subsidiesRental housingTax credit