The Low Income Housing Tax Credit Program is the primary federal program for producing new units of affordable housing. The program provides financial incentives to private developers to develop and operate affordable rental housing. In recent years, evidence has emerged that the program has led to clusters of subsidized housing in some cities. It is hardly surprising that some clustering would exist in a program in which the housing is constructed and owned by private developers. Despite the significant number of units produced by the program and despite the potential tendency for clustering of units built under this program, the locational patterns within the LIHTC program remain largely unexamined. Instead, most studies of the LIHTC program have focused on the national level rather than on individual cities. In contrast to previous studies, this study seeks to improve our understanding of variations in the LIHTC program across cities. The hypothesis of this study is that, because private developers produce housing in the LIHTC program and because the factors that influence private developers vary across cities, there is likely to be significant variation in the locational patterns of LIHTC developments across cities. The results of this study show, among other things, that clustering of LIHTC properties exists in the study cities, this clustering is extreme in some cases, and the clusters are associated with high poverty tracts in some cities. Given the LIHTC program's emphasis on market-driven policies and a similar emphasis in some other federal housing programs, such findings will likely be applicable to other affordable housing programs.

The federal Low Income Housing Tax Credit (LIHTC) program, authorized in 1986, has gained recognition over the last decade as America's largest place-based subsidized housing production program. The Qualified Census Tract (QCT) provision of the LIHTC program awards developers for projects built in high-poverty neighborhoods. This research examines whether the QCT provision is deconcentrating poverty or instead perpetuating it by comparing QCTs with LIHTC projects against QCTs with no LIHTC projects. In this study, a socioeconomic index is created to examine changes in socioeconomic variables (poverty, income, unemployment, and education) using 1990 Decennial Census data and 2005-2009 American Community Survey data for the twenty most populated MSAs in the United States to determine how LIHTC projects have changed the landscape of poverty in urban QCTs. Control and target groups were established to analyze the impact of LIHTC projects in QCTs. The control group consists of QCTs with no LIHTC projects and the target group contains QCTs with LIHTC projects. In order to determine how the socioeconomic variables have changed over the last fifteen years, the percent change from 1990 to 2005-2009 was calculated for each tract. Independent Sample T-tests were conducted at the national level, MSA level, and county level (when the sample size was large enough) using SPSS to determine if the difference in the target group's derived socioeconomic index and variables were significantly different from the control group. The findings indicate the target groups overwhelmingly outperformed the control groups for the socioeconomic index and every variable except unemployment. The results of this study may be valuable for policymakers to develop thresholds and guidelines for future LIHTC development in areas concentrated by poverty. / by Rebecca J. Walter. / Thesis (Ph.D.)--Florida Atlantic University, 2012. / Includes bibliography. / Electronic reproduction. Boca Raton, Fla., 2012. Mode of access: World Wide Web.