How is affordable if they still require 2.5 the rent as a qualification? This is NOT affordable housing unless it means reducing rent for working families or even for people with fixed income. We need subsidized housing not tax breaks for banks who have millions and don’t want to get taxed Please!!! Great education video it really uncovered some truth.
Rent received goes to the nonprofit (assuming they are also the property manager). All the revenue then goes to pay for property upkeep, staff wages, and to pay other partnership fees associated with the financing structures. Any other surplus cash is put towards future developments or overhead in the nonprofits operations.
The building I live in is about 10 years old. I've been told that the tenants that first moved in during the first few years have tax credit rent thus lower rent than those that have moved in in more recent years, which pay a much higher rent. Why would this be, and why is this fair and legal?
Tried it with Public Projects in the 60,s and the government messed it up big time. NYC Housing Authority runs rat infested, run down 160,000 units and loses $3B a year. With Govt money no one has any standard of care. With Private Money the Developer is motivated to build and maintain a good product as they get management fee. The state government controls quality and ongoing performance. More complicated but better solution that government run affordable housing.
@@SD-ik3fb The government can run public housing just fine, the problem is conservatives end up under funding it. Look at Vienna, Austria for an example of good public housing. How is it better for the government to give out $1 million in tax breaks in order to build $750,000 worth of housing?
Chris Walker - I have not seen Austrian public housing and can not comment but I have seen public housing in Paris and it is terrible - like our 60’s projects. We have tried public housing and it failed. A Public Private partnership is better in the long run with the operator having incentive to keep the property in good shape and provide the services for the tenants. Many of the operators are not for profits or professional management companies that have strong management experience. What would really drive down cost is if the various government entities cut down regulations and standardized the process across cities and states. In CA for example to build an LIHTC project you have to navigate anywhere between 6-10 different govt agencies...
This is wonderful. The stakeholders would still exist, even if the building wasn't a dilapidated unoccupied building! Affordable housing promotes diversity!
Sounds good, but whenever the government gets involved, they screw things up. Why not help folks get better jobs and afford nice houses? Also, lower properties taxes for everyone by getting rid of section 8 housing and other hand outs. As Ronald Reagan said, one of the worst things you can hear from someone is “I’m from the government and I’m here to help.”
![How The IRS Calculates 4% and 9% Low Income Housing Tax Credits [LIHTC]](/img/n.gif)
How is affordable if they still require 2.5 the rent as a qualification?
This is NOT affordable housing unless it means reducing rent for working families or even for people with fixed income.
We need subsidized housing not tax breaks for banks who have millions and don’t want to get taxed Please!!!
Great education video it really uncovered some truth.
What does it mean when your selected for low income housing tax credit?
Great video, I’m in Louisiana but this helps me a lot!
Who receives the rents that are paid?
Rent received goes to the nonprofit (assuming they are also the property manager). All the revenue then goes to pay for property upkeep, staff wages, and to pay other partnership fees associated with the financing structures. Any other surplus cash is put towards future developments or overhead in the nonprofits operations.
Nice video
Do you have to be a non-profit? ,
Yes, a non-profit must be in the limited partnership
@@racingvenny1151 Actually, no. For-profit developers may utilize the lihtc.
This is so succinct! Thank you!
If I am the only income earner on the lease and one of the tenants leaves and is released from the lease, will I be evicted for "making too much?"
Are you okay with me using this video from an affordable class that I am teaching?
Loved the simplicity
So clear! Thank you
The building I live in is about 10 years old. I've been told that the tenants that first moved in during the first few years have tax credit rent thus lower rent than those that have moved in in more recent years, which pay a much higher rent. Why would this be, and why is this fair and legal?
I WANT TO KNOW THAT TOO
I am real estate investor and my agent asked me to buy these types of property from Detroit, MI. Are they profitable?
Love it. Very creative
Very well done.
Wouldn't it just be cheaper for the government to just build $750,000 worth of affordable housing?
YES
Thank you for lifting the veil on this convulted and unnecessarily intricate Tax law. I thought I was the dumb one for not truly comprehending.
Tried it with Public Projects in the 60,s and the government messed it up big time. NYC Housing Authority runs rat infested, run down 160,000 units and loses $3B a year. With Govt money no one has any standard of care. With Private Money the Developer is motivated to build and maintain a good product as they get management fee. The state government controls quality and ongoing performance. More complicated but better solution that government run affordable housing.
@@SD-ik3fb The government can run public housing just fine, the problem is conservatives end up under funding it. Look at Vienna, Austria for an example of good public housing. How is it better for the government to give out $1 million in tax breaks in order to build $750,000 worth of housing?
Chris Walker - I have not seen Austrian public housing and can not comment but I have seen public housing in Paris and it is terrible - like our 60’s projects. We have tried public housing and it failed. A Public Private partnership is better in the long run with the operator having incentive to keep the property in good shape and provide the services for the tenants. Many of the operators are not for profits or professional management companies that have strong management experience.
What would really drive down cost is if the various government entities cut down regulations and standardized the process across cities and states. In CA for example to build an LIHTC project you have to navigate anywhere between 6-10 different govt agencies...
Ty..🙏.
I luv this video
Great!
This is wonderful. The stakeholders would still exist, even if the building wasn't a dilapidated unoccupied building! Affordable housing promotes diversity!
Jehmari's Mom diversity is not necessary a good thing.
LEAVE HUD 202 ALONE
Sounds good, but whenever the government gets involved, they screw things up. Why not help folks get better jobs and afford nice houses? Also, lower properties taxes for everyone by getting rid of section 8 housing and other hand outs. As Ronald Reagan said, one of the worst things you can hear from someone is “I’m from the government and I’m here to help.”
And how do you think they will get these better jobs if they don't have access to quality education or live in a safe and stable environment?
YES
getting rid of section 8 will not lower property tax....that is a local thing section 8 is federal.
Great!