Freddie Mac has published two white papers, "LIHTC in Middle Appalachia" and "LIHTC in Indian Areas," highlighting how the Housing Credit is being used to bring affordable rental housing to underserved markets.
"LIHTC in Middle Appalachia" reports rental housing is rare in rural Middle Appalachia: Only 26.7 percent of households are renters, compared to 36.4 percent nationally. Of these renter households, only 16.7 percent rent multifamily units, compared to 42.6 percent nationally. Housing Credit properties support a high percentage of these Middle Appalachian multifamily renters, providing affordable housing for tenants who would otherwise be severely rent-burdened.
According to "LIHTC in Indian Areas," there are more than 2,000 Housing Credit properties in Indian Areas, providing more than 80,000 units nationwide; however, not all of these properties specifically serve tribal members. The authors note that building affordable housing in tribal areas is especially challenging due to the high poverty levels and lack of infrastructure. Despite these challenges, tribal housing authorities successfully develop Housing Credit properties in Indian Areas each year, although the rate of development is too slow to close the housing gap in the near or moderate term.
The series is a component of Freddie Mac’s Duty to Serve plan to expand rental and home ownership opportunities in historically underserved markets.