Spring 2013 issue of Horizons

REAL ESTATE

The North Sarah Apartments in St. Louis, Missouri are one of the newly constructed housing units funded in part by Low Income Housing Tax Credits (LIHTC). Photo courtesy of McCormack Baron Salazar.

Tax Reform’s Unintended Impact on Affordable Housing Development by Bryan Keller, CPA

W ith pending tax reform on the horizon and the fact that all tax expenditures will likely be called into question, could one of the most successful financing tools ever created to provide affordable housing and community development be in trouble? Developments in Missouri and across the nation could face additional challenges as many state Low Income Housing Tax Credits (LIHTCs) and housing programs are also receiving greater scrutiny under budget review.

Yet, looking at the newly constructed LIHTC project, North Sarah Apartments Phase I which is located in the 18th Ward, just north of Gaslight Square in St. Louis, Missouri, it is difficult to imagine the LIHTC program being eliminated or reduced. Indeed, one cannot underestimate the impact this property has had on families in the surrounding community striving to find safe, affordable quality housing. It’s almost as if the community was transformed overnight when the project was constructed.

page 18 | horizons Spring 2013