To give context to the issue of affordable housing, I want to share this article by Josh Cohen from NextCity.org about the Low-Income Housing Tax Credit (LIHTC) which, since the Reagan era, has financially helped millions of low-income families with renting homes.
I encourage you to read it. In summary, the article states that because of tax cut promises from the new administration, investors are not as interested in giving money to developers for housing units with the Low-Income Housing Tax Credit. Here is an excerpt to explain the relation between the tax credit and its role in development:
“Created by President Ronald Reagan’s 1986 Tax Reform Act, the LIHTC program disburses federal income tax credits to affordable housing developers through state housing finance agencies. The developers (nonprofits and for-profit companies) negotiate with investors — often banks, insurance companies or other corporate entities — for funding in exchange for the credits. The former get money for their rent-restricted housing projects, and the latter get to reduce their tax burden. Unlike a tax write-off, the tax credits provide a dollar for dollar tax reduction. A dollar of LIHTC purchased is a dollar off the tax bill.”
However, now, investors are not as incentivized to invest in affordable housing projects because of potential tax cuts. This will make affordable housing less available throughout the country.
Keeping that in mind, Bike and Build provides not just young volunteers bicycling from town to town to help build houses, but also grants for affordable housing organizations, fueled by donations on behalf of riders. Click here to read more on Bike and Build’s role in grant-giving.
Thank you for reading, and know you can make a difference – whether it be donating through a B&B rider, or educating yourself, or picking up a hammer and helping your local affordable housing organization. Challenge yourself to get involved.
“Success is the sum of small efforts – repeated day in and day out.”