A US model involving private investment supported by tax
credits could be an alternative to the current system of social housing grant
funding in the UK, a report has found. Funding
Affordable Housing, written by Vic O’Brien development director at
Greensquare Group, looks at the system of Low Income Housing Tax Credits
(LIHTC) in the US. Under this system,
private corporations invest funds into affordable housing projects and receive
tax credits over 10 years, creating a return on investment. The report suggests
this avoids the present difficulties caused by low grant rates and the need for
developers of affordable housing to have enough asset cover. The LIHTC model
means providers do not need to make repayments from rental streams within the
project. Download a copy of the report from the Winston Churchill Memorial
trust website.
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