The Role of Vouchers in the Low-Income Housing Tax Credit Program

Dan Emmanuel
Andrew Aurand
National Low Income Housing Coalition

The Housing Choice Voucher (HCV) program was originally intended for use in the private market, but a subset of HCVs is used for affordable housing units financed through the Low-Income Housing Tax Credit (LIHTC) program. This article examines the relationship between these programs, which are two of the most significant federal sources of affordable housing funding. It provides background information on each program, reviews what is known about their relationship, and identifies areas for data improvements and future research that can inform federal policymaking. Further research based on nationally representative data is needed to answer basic questions about the extent to which HCVs are used in LIHTC units and whether it is an efficient use of the subsidy in the context of scarce resources for affordable housing. Future research can also address questions about cross-subsidization, the role that rental assistance might play in mounting preservation challenges within the LIHTC program, and implications for voucher success and mobility.