Blogs| Oregon Low-Income Housing Tax Credit (LIHTC) Program
Written by
Priya Gupta
Published
Dec 16, 2024
Topics
State LIHTC
The Oregon Low-Income Housing Tax Credit (LIHTC) Program is one of the pioneering state-level initiatives aimed at abating the housing affordability crisis in Oregon. Managed by Oregon Housing and Community Services, it encourages developers to develop and preserve rental housing for low—and moderate-income households.
Federal tax credits and further local support ensure stability in housing for Oregonians from urban centers and rural communities. The good news is that this effort addresses critical needs in high-demand areas like Portland, Salem, and Eugene and also benefits smaller cities and otherwise underserved regions, thus encouraging equitable development across Oregon.
The Oregon LIHTC program is carefully designed to meet the diverse needs of the state’s housing. Here’s how it works:
Tax credit allocation is the primary step in supporting affordable housing projects. OHCS makes it more feasible through the Qualified Allocation Plan (QAP), which would prioritize projects that address regional housing gaps, serve low-income households, and move toward sustainable building practices.
Affordability is the cornerstone of the program. Developers must commit to setting rents to be affordable to households earning 60% or less of the Area Median Income (AMI) for at least 30 years to ensure long-term benefits to the tenants.
Oregon’s LIHTC program combines federal tax credits with –
The program targets areas where gaps are registered. Urban cities, such as Portland and Salem, receive more attention than rural regions due to the rarity of affordability within those housing options.
While transforming the Oregon housing landscape, several challenges persist with the LIHTC program. These barriers need to be overcome for the continuation of this program.
Labor shortages have raised construction prices in Oregon, and material costs have also increased. These factors impact project timelines and budgets, thereby complicating affordable housing development.
Limited lands, especially in cities such as Portland, and strict zoning also restrict opportunities for affordable housing. House Bill 2001 will help smoothen out these requirements to create diverse housing types.
Residents typically protest affordable housing plans because they fear possible harmful effects on property and other concerns affecting their community. These must be debunked for things to move forward.
Despite the benefits of the LIHTC program, the demand for affordable housing far outstrips available LIHTC funding. Identifying alternative financing mechanisms is quite relevant in filling this gap.
Rural areas have unique challenges. There is limited availability of basic infrastructure, such as water and sewage systems, which increases the cost and complexity of housing developments.
The LIHTC program brings transformative benefits to communities across Oregon. These advantages encompass more than just housing: they touch on economic, social, and environmental dimensions.
Affordable housing development creates jobs and stimulates local economies. LIHTC projects boost property values and revitalization efforts in cities like Portland and Salem.
The program provides safe, stable housing to low-income families to reduce homelessness and housing instability. Efforts in Eugene and Medford have significantly improved communities.
LIHTC-supported projects revitalize dormant lands into thriving communities. Low-income housing in Portland reveals how these developments rejuvenate entire neighborhoods.
Because LIHTC demands extended affordability periods, extended durations ensure housing stability for generations into the future.
Each city in Oregon has its own set of unique housing challenges and opportunities. Here is how LIHTC addresses the regional needs:
Portland presents some of the state’s most daunting housing costs. Of these, LIHTC and allied programs:
Family, senior, and disabled citizen housing needs are prioritized in Salem.
Eugene focuses on housing around centers of employment and transit.
Medford addresses housing shortages by focusing on low-income families.
Smaller cities such as Bend and Gresham enjoy LIHTC investments for:
Oregon needs to address reforms and innovations that will overcome the challenges of the LIHTC program.
Streamlined, accelerated approval processes make building affordable housing less expensive and faster.
Oregon can take several steps toward increased LIHTC:
Engagement with communities on the benefits of affordable housing is likely to dissipate much opposition to future development.
Policies on density bonuses and land banking enable developers to easily access land, thereby improving the housing supply.
Green building practices and energy-efficient designs decrease operating costs while promoting long-term affordability, making housing more accessible to low-income families.
The Oregon Low-Income Housing Tax Credit (LIHTC) Program continues to be a vital piece of the state’s strategy for addressing affordable housing. It fosters collaboration, addresses challenges, and leverages resources, ensuring significant benefits across Oregon.
From Portland, Oregon’s Low-Income Apartments to Affordable Housing in Eugene, the LIHTC demonstrates how public-private collaboration can transform housing accessibility and community resilience.
With continued attention to innovation and reform, Oregon has the potential for expansion, creating affordable housing for all.
Fill in your email address to subscribe to our newsletter. Get expert insights, the latest LIHTC news, and valuable resources delivered directly to your inbox.
No spam—just valuable information.
