Affordable housing in the U.S. is on the brink of a major crisis, as thousands of units built under the Low-Income Housing Tax Credit (LIHTC) program are set to expire in the coming years. This program, which has been in place since 1986, has been responsible for creating 3.6 million affordable housing units, yet many of these units are nearing the end of their 30-year affordability period.
For tenants like Marina Maalouf, a longtime resident of Hillside Villa in Los Angeles, this expiration marks a significant threat to their livelihood. Marina’s rent doubled in 2021 after her building’s LIHTC contract expired, skyrocketing from $1,100 to $2,660—an unmanageable amount for her family. Her case is far from unique, as over 223,000 affordable units nationwide face the same fate in the next five years.
A Looming Expiration Crisis
The LIHTC program, designed to incentivize developers to create affordable housing, typically mandates that properties remain affordable for at least 30 years. Many properties built in the 1990s are now reaching the end of this term, and as the expiration dates arrive, the affordability of these units disappears. Without intervention, many low-income families will be forced into the competitive housing market, where rent consumes a significant portion of their income.
Some states, like California, have introduced measures to extend affordability. California requires LIHTC contracts to last 55 years for newer developments and gives local governments the first opportunity to purchase expiring properties. Other states, such as Colorado and New York, have enacted similar policies. However, the funds needed to buy and maintain these properties as affordable housing are often limited, making it a tough task for local governments and nonprofits.
The Struggle to Preserve Affordable Housing
While efforts are underway to preserve existing affordable housing, these measures face significant challenges. There is often little data available on when and where LIHTC units will expire, making it difficult for policymakers to act quickly. Furthermore, the limited availability of new tax credits and subsidies means not all properties will remain affordable once their contracts end.
The consequences of losing affordable housing are dire. As more units expire, families who were once able to manage their rent may find themselves displaced, adding to the already growing demand for affordable housing.
In cities like Los Angeles, tenants have begun organizing to fight back. Marina Maalouf, now an advocate with the LA Tenants’ Union, continues to fight her eviction battle. With over 30 eviction cases still pending in her building, she represents the thousands of families across the U.S. grappling with the same uncertainty.
A Call to Action
As the expiration of LIHTC units continues, the need for proactive measures to preserve affordable housing is more urgent than ever. Governments, nonprofits, and policymakers must collaborate to ensure that families like Marina’s aren’t left without a place to call home. The clock is ticking on affordable housing, and without decisive action, the U.S. could see a severe loss of affordable housing stock when it is needed most.
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