-A A +A

Report: ACTION proposals would lead to housing investment

Posted by: VHFA on October 13, 2009 - 10:19am

A recent report by Ernst & Young says if proposals made by Affordable Rental Housing A.C.T.I.O.N. are adopted by Congress, investment in affordable housing development will increase substantially.

The report estimates investment in large and small housing developments in metro and rural regions across the country is likely to increase by nearly 50 percent in 2010 and '11.

The financial crisis has reduced investment in the Low Income Housing Tax Credit (LIHTC) program, the most successful program for boosting affordable housing production.

Since 1986, LIHTCs have financed 388 affordable rental homes a year in Vermont.

Washington, D.C.-based non-profit organization A.C.T.I.O.N. (A Call to Invest in Our Neighborhoods) has drafted three legislative proposals to help jump-start investment in Tax Credits.

According to the Ernst & Young report, Vermont stands to benefit from at least $21.1 million in additional equity investment through 2011 that will be used to construct or rehab 354 affordable rental homes, while creating 534 jobs.

Read more about A.C.T.I.O.N. at the group's Web site. Learn more about the group's proposal's potential effects on Vermont in their Vermont fact sheet (PDF).