The Weakness of Neighborhood Revitalization Planning in the Low-Income Housing Tax Credit Program: Warnings from Connecticut
April 25, 2023 by Fair Housing Month underscores the ongoing need to ensure effective Fair Housing policies, as highlighted by a recent paper by Noah Kazis and Kathy O’Regan, titled “The Weakness of Neighborhood Revitalization Planning in the Low-Income Housing Tax Credit Program: Warnings from Connecticut.” The paper critiques the enforcement of a key provision of the Low-Income Housing Tax Credit (LIHTC), the leading federal mechanism for affordable housing. Federal law mandates that LIHTC allocations prioritize projects in high-poverty areas contributing to a “concerted community revitalization plan” (CCRP) to prevent the concentration of poverty and promote neighborhood revitalization. However, the authors’ ten-year analysis of Connecticut’s LIHTC applications reveals that CCRP requirements are largely under-enforced, with all applications claiming CCRP contributions receiving approval despite minimal compliance with statutory terms or intent. The study found no significant difference in revitalization efforts between high-poverty projects seeking CCRP credits and those in low-poverty areas, suggesting the CCRP process fails to drive meaningful or additional revitalization planning. The authors propose reforms to strengthen the CCRP process, ensuring it better utilizes federal and state investments to achieve broader neighborhood improvements and fulfill Congressional goals.