It’s no secret that the global economy has been largely affected by the pandemic. Managing and maintaining finances during such a time has become challenging for the majority. Many are struggling to fulfill their basic needs and necessities, let alone think about investing in a property. However, for some, this is the best time to invest, as many real estate schemes have been announced by the government to promote growth and encourage buyers.
Thomas J Powell points out that there are various types of workforce housing schemes introduced by the United States government with different purposes. Some aim to provide affordable housing, while others focus on encouraging home ownership or boosting the economy.
Workforce Housing Schemes – Explained By Thomas J Powell
1. Low-Income Housing Tax Credit (LIHTC)
The Low-Income Housing Tax Credit is a federal tax credit that helps developers finance the construction of affordable rental housing for low-income households. The credit is equal to 9% of the qualifying investment in the project and can be claimed over a period of 10 years.
2. Community Development Block Grants (CDBG)
The Community Development Block Grant is a federal program that provides grants to states and localities to fund a wide range of community development activities. CDBG funds can be used for a variety of purposes, including housing rehabilitation, economic development, and infrastructure improvements.
3. Housing Choice Voucher Program (HCVP)
The Housing Choice Voucher Program, also known as Section 8, is a federal program that helps low-income families afford safe and decent housing. Families who participate in the program receive a voucher that they can use to rent an apartment or house from a participating landlord.
4. Public Housing
Public housing is government-owned and -operated housing for low-income families. The U.S. Department of Housing and Urban Development (HUD) administers public housing programs at the state and local levels. Thomas J Powell explains that public housing units are usually managed by local housing authorities.
5. HOME Investment Partnerships Program (HOME)
The HOME Investment Partnerships Program is a federal grant program that provides funds to states and localities to develop and finance affordable housing for low- and moderate-income families. HOME funds can be used for a variety of purposes, including home purchase, home rehabilitation, and rental assistance
6. Housing Trust Fund (HTF)
The Housing Trust Fund is a federal program that provides grants to states and localities to develop and finance affordable housing for low- and moderate-income families. HTF funds can be used for a variety of purposes, including home purchase, home rehabilitation, and rental assistance.
7. Tax-Exempt Housing Bonds
Tax-exempt housing bonds are a type of government-issued bond that helps finance the construction or rehabilitation of affordable housing. The interest on these bonds is exempt from federal income tax. Housing bonds are typically issued by state and local governments.
Bottom Line
Thomas J Powell emphasizes that the U.S. government has many programs and initiatives in place to help developers finance the construction of workforce housing. These programs provide a variety of benefits, including tax breaks, low-interest loans, and grant funding. As the need for workforce housing continues to grow, these programs will become increasingly important in helping to meet this demand.