The Neighborhood Homes Investment Act (NHIA) Coalition's goal is to create a financing tool for single-family housing, as powerful as Low-Income Housing Tax Credit (LIHTC), to help transform neighborhoods across the country. This new financing tool will not only drive much needed resources to investment-starved communities, but it will also enlarge and elevate the nascent affordable, single-family housing development industry that was catalyzed by events like Hurricane Katrina and the mortgage foreclosure crisis.
Since the creation of the LIHTC in 1986, the community development movement has concentrated the bulk of its resources (political power, talent, and funds) on multi-family, low-income rental housing. LIHTC was an easy fit with the thousands of empty, hulking apartment buildings that dominated the urban landscape at that time. When community development corporations and investors realized that thousands of new and rehabbed units could be entirely financed through this reliable and reoccurring program, much of the community development movement began to shift toward low-income rental housing production.
In under a decade, LIHTC became the most productive affordable housing finance tool in urban America. To date, LIHTC has created 2.5 million affordable rental units, and the program accounts for the vast majority (approximately 90 percent) of all new affordable rental housing built in the US today. A vast ecosystem of lenders, syndicators, designers, lawyers, and builders has developed to facilitate this program which consistently receives bipartisan support at the local, state and nation levels.