Comparing Opportunity Metrics and Locational Outcomes in the Low-Income Housing Tax Credit Program

Walter, Rebecca J.; Wang, Ruoniu; Jones, Sarah L.

doi:10.1177/0739456x17711224

Cited by 19 publications

(8 citation statements)

References 25 publications

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“…For example, California's LIHTC program introduced in 2020 a methodology to identify areas that are “moderate resource” but may soon become “high resource” based on recent socioeconomic trends (Reid 2019). This was done from the perspective that locating affordable housing units in socioeconomically ascending neighborhoods offers the types of neighborhood resources, such as access to public transportation, less environmental hazards, and greater access to healthy food outlets, to lower-income residents that they either cannot find in the disadvantaged neighborhoods that LIHTC developments typically go to, or are excluded from in the wealthier neighborhoods that LIHTC developments are less likely to be placed in (Walter, Wang and Jones 2018). However, considerable variation exists in how states modify the QCT criteria, with many making no adjustments and others modifying it but not incorporating neighborhood change (Ellen and Horn 2018).…”

Section: Discussionmentioning

confidence: 99%

Investing in Gentrification: The Eligibility of Gentrifying Neighborhoods for Federal Place-Based Economic Investment in U.S. Cities

Brazil

Portier

2021

Urban Affairs Review

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Place-based policies commonly target disadvantaged neighborhoods for economic improvement, typically in the form of job opportunities, business development or affordable housing. To ensure that investment is channeled to truly distressed areas, place-based programs narrow the pool of eligible neighborhoods based on a set of socioeconomic criteria. The criteria, however, may not be targeting the places most in need. In this study, we examine the relationship between neighborhood gentrification status and 2018 eligibility for the New Markets Tax Credits, Opportunity Zones, Low Income Housing Tax Credits, and the Community Development Financial Institutions Program. We find that large percentages of gentrifying neighborhoods are eligible for each of the four programs, with many neighborhoods eligible for multiple programs. The Opportunity Zone program stands out, with the probability of eligibility nearly twice as high for gentrifying tracts than not-gentrifying tracts. We also found that the probability of eligibility increases with a greater percentage of adjacent neighborhoods experiencing gentrification.

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Section: Discussionmentioning

confidence: 99%

Investing in Gentrification: The Eligibility of Gentrifying Neighborhoods for Federal Place-Based Economic Investment in U.S. Cities

Brazil

Portier

2021

Urban Affairs Review

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“…Walter and Wang, 2016; Wang et al, 2017). Specifically, neighbourhoods in or near urban centres that are relatively high in poverty have transportation accessibility in Florida (Walter et al, 2015, 2018). Therefore, moving to neighbourhoods with higher poverty may be a rational decision for a household if they choose to sacrifice a certain degree of neighbourhood quality in pursuit of close proximity to public transportation and urban services.…”

Section: Discussionmentioning

confidence: 99%

Understanding the role of life events on residential mobility for low-income, subsidised households

et al. 2018

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While the role of life events on residential mobility for the general population is well documented, little is known for low-income, subsidised households. Insights into this line of inquiry are instrumental for improving housing policies and programmes that aim for a more equal distribution of residents across the economic spectrum. The present study draws on a unique data set that covers the entire low-income population participating in the Housing Choice Voucher (HCV) programme from 2007 to 2013 in the state of Florida, USA. Results show that life events are strongly and significantly related to mobility decisions, while the relationship between life events and changes in neighbourhood poverty is less prominent. In light of this, a full understanding of residential mobility requires the consideration of life events by accounting for housing assistance, given its compounding effect on the mobility process and outcomes for low-income households.

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“…In this respect, scholars have focused on whether revising a QAP can reshape the location patterns of LIHTC developments. Walter et al (2017) found that the revision of QAP can change the spatial distribution of LIHTC developments. After the opportunity provision was included in the 2009 Texas QAP, LIHTC projects were increasingly located in neighborhoods with lower levels of poverty and higher levels of racial diversity.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring Spatial Clustering Over Time and Spillover Effects of the Low-Income Housing Tax Credit on Neighborhood-Level Income Segregation

Won

2020

Urban Affairs Review

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This study investigates the longitudinal and spatial patterns and spillover effects of Low-Income Housing Tax Credit (LIHTC) developments on neighborhood-level income segregation. Focusing on all MSAs in the U.S., the results show that LIHTC units have been spatially clustered in socioeconomically disadvantaged neighborhoods over time. This research also explores the spillover effects of LIHTC units on neighborhood economic status by utilizing propensity scores and weighted linear regression to address a self-selection bias of developers’ decisions regarding the location of LIHTC projects. The results suggest that LIHTC developments, in general, are expected to increase the concentration of households that have lower income than the average household income of the MSA. However, in high-poverty neighborhoods, LIHTC developments yield positive spillover effects on neighborhood economic status. Moreover, providing LIHTC units in high-poverty neighborhoods where LIHTC units were built previously in the focal or any adjacent neighborhood also improves neighborhood economic status.

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Comparing Opportunity Metrics and Locational Outcomes in the Low-Income Housing Tax Credit Program

Cited by 19 publications

References 25 publications

Investing in Gentrification: The Eligibility of Gentrifying Neighborhoods for Federal Place-Based Economic Investment in U.S. Cities

Investing in Gentrification: The Eligibility of Gentrifying Neighborhoods for Federal Place-Based Economic Investment in U.S. Cities

Understanding the role of life events on residential mobility for low-income, subsidised households

Exploring Spatial Clustering Over Time and Spillover Effects of the Low-Income Housing Tax Credit on Neighborhood-Level Income Segregation

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