When experts talk about the cost of rents or mortgages for low income individuals and families, the phrase “deeper affordability” comes up. The question; How do we make homes available to people with incomes lower and lower on the income scale (below the median income for an area)?

For most of us above the median income, the cost of our homes is relative based on the number of acres, bathrooms, detached buildings, and stainless steel applicances. For those well below the median, the cost of a home involves the more basic issues of safety, access to grocery stores, and the day-to-day security of having a place to call home.

During a recent discussion of financing “deeper affordability,” an expert mentioned Low Income Housing Tax Credits as a Federal housing program unlikely to be slashed by the Bushies. Would Bush cut a tax credit that primarily benefits insurance companies and pension funds? That the credit may help low income people have a stable home probably doesn’t factor into the equation when an insurance company ‘pencils out a deal.’ However, like the Earned Income tax credit, it may be necessary to structure a ‘tax credit’ rather than an ‘income subsidy.’

For information about Low Income Housing Tax Credits, check out Novogradac and Company LLC at http://www.novoco.com/resource.shtml Don’t be put off by the fact that this is a CPA firm. Click the Policy and Legislation tab.

What agencies (public and private) in your area provide local financing of low income homes? How are Community Development Block Grant funds allocated?