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Paper: eres2016_271
| Paper title: | Difficult Developments Areas and the Supply of Low-Income Housing Tax Credit Units |
| Authors: | Eriksen, Michael |
| Summary: | The designation of a metropolitan area as a Difficult Development Area (DDA) by the US Government increases the per-unit generosity of the subsidy that private developers receive for supplying housing units under the Low-Income Housing Tax Credit (LIHTC) program. The top 20% of metropolitan areas ranked by the ratio of annual rent divided by household income receive the designation and a 30% increase in subsidy. Regression discontinuity (RD) methods are used to compare how DDA designation affects the quantity, composition, and location of LIHTC units based on the 20% threshold. I find increasing the generosity of the subsidy on a per-unit basis through DDA designation results in a 39% decrease in LIHTC units constructed in the metropolitan area. I also find that a DDA designation makes developers less likely to locate LIHTC units in low-income neighborhoods. |
| Type: | paper session |
| Year of publication: | 2016 |
| Series: | ERES:conference |
| Download paper: | |
| Citation: | Eriksen, Michael (2016). Difficult Developments Areas and the Supply of Low-Income Housing Tax Credit Units. 23rd Annual European Real Estate Society Conference in Regensburg, Germany, http://itc.scix.net/paper/eres2016_271 |
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includes:
W78
includes:
W78
inspired by SciX, ported by Robert Klinc [2019]