- Housing projects financed by the LIHTC in the Bay Area were relatively well distributed across the boundaries of opportunity, although there was variability depending on program type, project year, and project type (See Charts 1, 2b, and 3a).
- Nine Percent Tax Credit projects outperformed the Four Percent Tax Credit in financing projects in higher opportunity neighborhoods. For example, Nine Percent Tax Credit projects were more likely to be sited in Very High opportunity neighborhoods than Four Percent Tax Credit projects (25.7% versus 17.5%) (See Table 1).
- More than 45% of Large Family projects were sited in Low and Very Low opportunity areas. In particular, Large Family New Construction projects and units were disproportionately placed in low-opportunity areas, where resources for families with children are inadequate to support healthy development and upward mobility (See Table 3 and Appendix Table 8).
- A large plurality of Nine Percent Tax Credit Acquisition and Rehabilitation projects were sited in Very High opportunity neighborhoods, and these projects robustly outperformed both Nine Percent New Construction projects and Four Percent Tax Credit projects of all types (See Chart 2b).
- While more Nine Percent Acquisition and Rehabilitation projects were sited in Very High opportunity neighborhoods than other project types, changes are needed to reduce the percentage of Nine Percent and Four Percent projects in both the New Construction and Acquisition and Rehabilitation categories that are sited in Low and Very Low opportunity areas (See Table 2).
- More than 61% of LIHTC developments and awards were dispersed in areas where over 60% of the population were people of color (See Table 4).
- In neighborhoods with populations that were majority-people of color, there were three times the amount of LIHTC projects than majority-white neighborhoods. Additionally, the ratio of Nine Percent Tax Credit units in majority-people of color neighborhoods to majority-white neighborhoods was 3.78:1. These findings demonstrated that there is much to be desired in terms of promoting LIHTC projects in racially integrated areas (See Tables 4 and 5).
As HCD and TCAC explore options to strengthen existing housing programs such as LIHTC, it is important that the state’s development of a long-term housing plan ensures fair and equitable affordable rental housing outcomes to combat systemic segregation and poverty, and fosters diverse and balanced living model free from exclusionary barriers where individuals—regardless of their race, background, and status—have access to opportunities.