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Evaluating the Low‐Income Housing Tax Credit
Author(s) -
Wallace James E.
Publication year - 1998
Publication title -
new directions for evaluation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.374
H-Index - 40
eISSN - 1534-875X
pISSN - 1097-6736
DOI - 10.1002/ev.1107
Subject(s) - subsidy , business , equity (law) , transaction cost , tax credit , public economics , economics , database transaction , earned income tax credit , finance , political science , computer science , law , market economy , programming language
Central issues in evaluating the Low‐Income Housing Tax Credit are cost‐effectiveness as the program stands; whether it adds to the supply of affordable housing; whether development costs of tax credit projects are reasonable relative to private, unsubsidized housing development; whether alternative means of achieving the objectives would be more efficient or be better targeted to lower‐income households; and the feasibility of replacing the program with a directly budgeted subsidy. Methodological requirements for the evaluation include developing clear relationships among government costs, transaction costs, investor returns, and net equity provided to a project.