Affordability After Subsidies: Understanding the Trajectories of Former Assisted Housing in Florida

Neighbourhoods, local networks and the non-linear path of the expiration and preservation of federal rental subsidies

“…This may be due to the volatility of the market during the later period and the growth in advocacy and preservation work done by nonprofit and government actors (Ray et al, 2015;Reina and Begley, 2014). In addition, buildings serving the lowest incomes -such as those with Section 8 place-based subsidies -were less likely to remain affordable after an opt out, compared to higher income targets that often remained close to the Fair Market Rent (Blancoa et al, 2015). This research suggests that not only are buildings in newly gentrifying neighbourhoods most at risk from a subsidy opt-out, but that the poorest households are most vulnerable to displacement.…”

“…Over the past decade, studies have evaluated the factors that threaten the subsidised stock such as: owner opt-outs and prepayments; expiration of the subsidy; and the physical deterioration of the buildings, which can lead to failed inspections and the loss of the subsidy (Blancoa et al, 2015;Ray et al, 2015;Wyly and DeFilippis, 2008). Between 2005 and 2015, 8% of all subsidised housing units were lost from the stock, compared to 19% between 1998stock, compared to 19% between and 2004stock, compared to 19% between (Ray et al, 2015.…”

Preservation of Affordable Rental Housing: Evaluation of the MacArthur Foundation's Window of Opportunity Initiative

“…In markets where prevailing rates are sufficiently low, a conversion to market rate can result in the units remaining affordable. Available evidence about the "post-subsidy affordability of assisted housing" suggests that this is a common outcome in many markets (Blanco et al, 2015). For example, a large majority of the approximately 11,500 early-year LIHTC properties nationally remained affordable with or without a new infusion of subsidy after they reached year 15, which is the point in time when the initial affordable restriction period ends and the owner can request exception from the state agency from the second 15-year extended use period (Khadduri et al, 2012).…”

“…For example, a large majority of the approximately 11,500 early-year LIHTC properties nationally remained affordable with or without a new infusion of subsidy after they reached year 15, which is the point in time when the initial affordable restriction period ends and the owner can request exception from the state agency from the second 15-year extended use period (Khadduri et al, 2012). 10 In a recent analysis of what happened to Florida properties whose subsidy had expired, 8 percent of 161 "lost properties" were demolished or went vacant, 18 percent were converted to condominiums, 44 percent remained affordable rentals to households at income levels previously served by that property, 14 percent were mixed-income rentals, and only 16 percent became unaffordable rentals (Blanco et al, 2015).…”

Year 15 and the Preservation of Low-Income Housing Tax Credit Projects: Lessons from Detroit, Michigan

“…While many of the LIHTC projects are aging, how to address the preservation needs that are likely to come up has not become a major concern for the program. Studies of affordable housing preservation have often looked at properties funded by earlier housing programs such as the Project-Based Section 8 program (Blanco et al 2015; Ray et al 2018). Few have examined what can be done to preserve LIHTC projects that are at risk of leaving the affordable inventory.…”