Working Paper

Do Low-Income Rental Housing Programs Complement Each Other? Evidence from Ohio


Abstract: We characterize rental subsidy use in units developed with construction subsidies and explore whether the subsidy overlap responds to needs unmet by a tenant-based program alone. We present a subsidy allocation model allowing for program complementarity to guide our analysis of multiple subsidy use in Low Income Housing Tax Credit (LIHTC) units. Findings for Ohio in 2011 suggest that rental assistance in LIHTC exhibits some degree of subsidy complementarity, particularly, when serving very poor households with special housing needs. We also find that very low income voucher holders who face a less affordable market or a potential gain in neighborhood quality are attracted to use their voucher in a LIHTC unit. However, our analysis finds a significant portion of households in LIHTC units that could seemingly be housed in the private rental market, signaling some degree of inefficient allocation of subsidies.

Keywords: Housing Choice Vouchers; Housing Policy; Tax Credit; Poverty; Low-Income Housing; Neighborhood Quality; Affordable Housing;

JEL Classification: R38; R23; H71;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 2014-11-19

Number: 1429

Pages: 33 pages

Note: Do Tenant- and Place-Based Rental Housing Programs Complement Each Other? Evidence from Ohio (2014)