4 In addition, the government provided new market-based incentives to attract private capital to community development. For example, the Low-Income Housing Tax Credit program, created in 1986, offers credits to investors in affordable rental housing. The affordable housing developments, in turn, often rely on community-based organizations to help with development, financing, and property management.
More than 2 million units of affordable rental housing have been built as a result of investors using the incentives offered by the program since its inception. 5 Today, nationwide, there are more than 1,000 certified CDFIs with a collective $ billion in assets.