Low-income-rental-housing programs in the Fourth District
In the aftermath of the Great Recession, many policy analysts are rethinking national housing policies, including affordable housing programs. We review the literature to compare the largest tenant-based (housing choice voucher or HCV) and place-based (low-income-housing tax credit or LIHTC) programs with respect to cost efficiency and access to better quality neighborhoods. We also provide an overview of low-income-rental-housing policy trends and perform a rough comparison of neighborhood quality across programs and counties, focusing on four main urban counties in the Fourth Federal Reserve District (Cuyahoga, Hamilton, and Franklin in Ohio, and Allegheny in Pennsylvania). We find that in spite of relatively stable real rents, affordability in the Ohio counties declined between 2005 and 2009 due to a drop in real incomes. We find that in Allegheny County during 2006-2009, neighborhood quality was comparable for rental units available through each of the two housing programs. We also find evidence that neighborhoods with LIHTC investments placed in service by 2000 in Allegheny County improved their quality by 2006-2009 relative to comparable neighborhoods, but we do not find similar evidence for the Ohio counties. Lacking tenant-level data on LIHTC renters, it is hard to explain these regional differences. Finally, we note that richer data reporting on various aspects of HCV and LIHTC would improve the ability of program administrators and policymakers to design, coordinate, and evaluate programs based on efficiency and effectiveness.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.clevelandfed.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dionissi Aliprantis, 2011.
"Assessing the evidence on neighborhood effects from moving to opportunity,"
1122, Federal Reserve Bank of Cleveland.
- Aliprantis, Dionissi, 2012. "Assessing the evidence on neighborhood effects from Moving to Opportunity," Working Paper 1122R, Federal Reserve Bank of Cleveland.
- Dionissi Aliprantis, 2012. "Assessing the evidence on neighborhood effects from moving to opportunity," Working Paper 1233, Federal Reserve Bank of Cleveland.
- Dionissi Aliprantis, 2011. "Assessing the evidence on neighborhood effects from moving to opportunity," Working Paper 1101, Federal Reserve Bank of Cleveland.
- Partridge, Mark D. & Rickman, Dan S. & Olfert, M. Rose & Tan, Ying, 2012.
"When spatial equilibrium fails: is place-based policy second best?,"
40270, University Library of Munich, Germany.
- Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2012. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Economics Working Paper Series 1204, Oklahoma State University, Department of Economics and Legal Studies in Business.
- Eriksen, Michael D., 2009. "The market price of Low-Income Housing Tax Credits," Journal of Urban Economics, Elsevier, vol. 66(2), pages 141-149, September.
- Gregory S. Burge, 2011. "Do Tenants Capture the Benefits from the Low‐Income Housing Tax Credit Program?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(1), pages 71-96, 03.
- Freedman, Matthew & Owens, Emily G., 2011.
"Low-income housing development and crime,"
Journal of Urban Economics,
Elsevier, vol. 70(2), pages 115-131.
- Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics.
- Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 654-666, June.
- Malpezzi, Stephen & Vandell, Kerry, 2002. "Does the low-income housing tax credit increase the supply of housing?," Journal of Housing Economics, Elsevier, vol. 11(4), pages 360-380, December.
When requesting a correction, please mention this item's handle: RePEc:fip:fedcwp:1311. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lee Faulhaber)
If references are entirely missing, you can add them using this form.