Press Room

States across the country are increasingly encouraging the development of supportive housing through their low income housing tax credit (LIHTC) programs.

Every state provides potential scoring advantages or extra consideration for supportive housing, according to Housing Credit Policies in 2007 that Promote Supportive Housing, a new study that looked at each state’s qualified allocation plan (QAP).

That’s a jump from 36 states that offered scoring advantages in 2005, according to Patricia Magnuson, national director of supportive housing for Enterprise, which produced the study along with the Corporation for Supportive Housing (CSH).

The study found that 20 states had implemented notable new policies or substantially revised policies encouraging supportive- housing development in the two years between the studies.

Twelve states promote supportive housing through set-asides. Many of these set-asides have been created or expanded in recent years.

Five states promote the development of supportive housing through threshold criteria. Two states, North Carolina and Louisiana, call for all tax credit developments to reserve a percentage of their total units for supportive housing.

“Expanding opportunities for private investment through the federal housing credit program is a productive and proven way for states to create permanent affordable housing while addressing the special needs of homeless persons without burdening state budgets,” said Deborah De Santis, president and CEO of CSH.

The QAP requirements and incentives can lead to tension about how to fund and underwrite the necessary social services and programs. Some industry leaders have raised concerns that states are creating “unfunded mandates.”

Funding for the services come from a variety of sources. De Santis said the mental health systems have been strong supporters. Some states have directed funds from the federal Temporary Assistance to Needy Families program to services. Federal McKinney- Vento Homeless Assistance Act and Housing Opportunities for Persons With AIDS funds have also helped pay for services.