Hundreds of thousands of affordable rentals could convert to market-rate housing in the next five years because of expiring tax credits, according to a new study.
Around 180,000 units built with the federal government’s Low-Income Housing Tax Credit will be eligible to become market-rate housing by 2027, The Wall Street Journal reported, citing Moody’s Analytics data.
Without new agreements or new subsidies, the owners of 100,000 units annually, starting this year, could remove the income restrictions and dramatically raise rents.
“When these properties are exiting the program, there’s no legal avenue to force them to stay in it,” Kevin Rabin, director of litigation at Three Rivers…