Resource Guide

Powerful Tools for Revitalizing Communities

Cinnaire is committed to supporting programs that preserve and expand access to capital for affordable housing and community development. By leveraging public-private partnerships, our team fosters creative and impactful financing. We advocate alongside industry partners and community stakeholders for fair local, regional and federal policies because we have an unwavering belief that all people deserve the opportunities provided by living in healthy communities. As a resource for our partners, we have compiled an overview of sources and information on all things impacting the affordable housing and community development industries.

The Low Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) is the nation’s largest and most successful tool for encouraging private investment in the production and preservation of affordable rental housing. Over the past 30 years, it has financed nearly 3 million affordable apartments, providing homes to over 6.5 million low-income households. However, our nation’s affordable housing needs are growing at a rate that far outpaces available affordable housing resources, with over 11 million low-income households still paying more than half of their income toward rent. The LIHTC is a proven tool to help address this crisis.

Learn More from Novogradac

New Markets Tax Credit

The New Markets Tax Credit (NMTC) was designed to increase the flow of capital to businesses and low-income communities by providing a modest tax incentive to private investors. Over the last ten years, the NMTC has proven to be an effective, targeted and cost-efficient financing tool valued by businesses, communities and investors across the country. The NMTC attracts private investment capital to some of the most distressed urban, suburban and rural communities. Through 14 application rounds of the NMTC Program, the CDFI Fund has made 1,105 awards, allocating a total of $54 billion in tax credit authority to CDEs through a competitive application process. Cinnaire will continue to support expansion and permanent extension of the NMTC.

Learn More from the New Markets Tax Credit Coalition

Opportunity Zone Program

An Opportunity Zone is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investment in targeted communities called Opportunity Zones. Opportunity Zones are census tracts designated by state and federal governments targeted for economic development. Opportunity Funds allow investors to defer federal taxes on any recent capital gains until December 31st, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the investment is held for 10 years. An investor who has triggered a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they roll that gain into an Opportunity Zone Fund within 180 days.

Learn More from the CDFI Fund

Reports and Trends

The CDFI Fund report: Expanding Opportunity details the impact of the 2019 recipients of CDFI Fund programs

The CDFI Fund Summary Report and Public Data for NMTC Program for FYs 2003-2017 (published November 2019), a report summarizing all NMTC investments made across the nation through FY 2016.

New Markets Tax Credit Report – The 2018 New Markets Tax Credit (NMTC) Progress Report provides a survey of NMTC activities in 2017. As in the past, the report documents the flexibility and importance of the NMTC in  meeting the needs of distressed communities where it is deployed and helping to create jobs and grow business opportunities, from more traditional industry and community sectors to new and cutting-edge technology.

The National Park Service 2017 annual report Federal Tax Incentives for Rehabilitating Historic Buildings includes a summary of overall complete projects as well as state-by-state activity.

The U.S. Government Accountability Office (GAO) report Rental Assistance Demonstration: HUD Needs to Take Action to Improve Metrics and Ongoing Oversight examines the oversight and performance of the RAD program. The report outlines five recommendations to HUD intended to improve leveraging metrics, monitoring of the use and enforcement of resident safeguards, and compliance with RAD requirements.

The National Low Income Housing Coalition releases The Gap: A Shortage of Affordable Homes finding that no state has an adequate supply of affordable rental housing for the lowest income renters.

The National Community Reinvestment Coalition study HOLC “Redlining Maps: The Persistent Structure of Segregation and Economic Inequality revealed that redlining, economic inequality and residential segregation still persist in many communities. Eighty  years ago, a federal agency, the Home Owners’ Loan Corporation (HOLC) created “Residential Security” maps of major American cities. These maps document how loan officers, appraisers, and real estate professionals evaluated mortgage lending risk during the era immediately before the surge of suburbanization in the 1950s. The report finds that gentrification is related to some lessening of segregation, but also with increased economic inequality.

Prosperity Now 2018 Scorecard and report Whose Bad Choices? How Policy Precludes Prosperity and What We Can Do About It are comprehensive resources for data on household financial health and policy recommendations to help put everyone in our country on a path to prosperity.

Freddie Mac’s research How Big a Difference Do Restricted Rents Make? shows that market rate rent increases from 2012 to 2017 ranged from 1.6% to 7.9% annually, averaging 5%. During the same period, restricted rent changes ranged from -0.7% to 3.2% annually, and averaged 0.9% per year. Averaged across all nine of the selected markets in 2017, a tenant in a market rate unit spent $7,500 more per year than a tenant in a similarly sized rent-restricted 2BR unit.

The National Law Center on Homelessness & Poverty report Protect Tenants, Prevent Homelessness shows the link between renters rights and homelessness. The report provides policy recommendations for governments to directly address the underlying causes of housing instability and homelessness.