“Third, the tax credit program is excessively bureaucratic, which has made it susceptible to corruption. The federal government distributes the funds to state housing authorities, who then issue grants to private developers. Developers usually sell their credits to banks, allowing them to offset taxes and fulfill Community Reinvestment Act requirements. The application process has spawned an industry of accounting and law firms specializing in securing grants.<br><br>Meeting the eligibility criteria does not guarantee one a unit. In fact, most low-income people do not benefit from the tax credit. Residents, while not well off, are not necessarily poor. Those not receiving units often pay higher rents for inferior units elsewhere, sometimes waiting years for a subsidized unit to become available.”

"Third, the tax credit program is excessively bureaucratic, which has made it susceptible to corruption. The federal government distributes the funds to state housing authorities, who then issue grants to private developers. Developers usually sell their credits to banks, allowing them to offset taxes and fulfill Community Reinvestment Act requirements. The application process has spawned an industry of accounting and law firms specializing in securing grants.

Meeting the eligibility criteria does not guarantee one a unit. In fact, most low-income people do not benefit from the tax credit. Residents, while not well off, are not necessarily poor. Those not receiving units often pay higher rents for inferior units elsewhere, sometimes waiting years for a subsidized unit to become available."

Low-income housing tax credit program deserves a critical evaluation

For more than 30 years, the low-income housing tax credit program has enjoyed bipartisan support despite being poorly designed and having a poor track record at improving housing for low-income
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