Tax Notes Talk The Tax Provision Worsening the Affordable Housing Crisis
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Apr 3, 2026 Cady Stanton, Tax Notes reporter who investigated LIHTC policy, leads a probe into a 1990s provision. Jennifer Schwartz, housing advocacy director, explains the LIHTC mechanics and the qualified contract formula. Gina Chiala, tenant-advocacy attorney, highlights legal and community impacts. Teresa Myers, former resident, shares her displacement story. The conversation covers policy, legal gaps, and human costs.
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Tenant Story Of Losing Accessible LIHTC Home
- Teresa Myers moved into Rosewood Estates because it provided affordable, accessible housing for people with disabilities.
- Within three years she was forced out after owners pursued an early opt-out, destroying a close-knit support community and her mobility routines.
Qualified Contract Lets Owners Exit After 15 Years
- The LIHTC program offers a 30-year affordability goal but contains a qualified contract allowing owners to exit after 15 years.
- The qualified contract uses a statutory formula to set a sale price that often exceeds the actual appraised value, making it hard for states to find buyers who will keep units affordable.
Confusing Notices And Lawsuit At Rosewood Estates
- After signage promised luxury senior living, Rosewood tenants received confusing notices and some faced eviction despite federal rules barring rent increases for three years.
- Teresa sued, alleging owners misled residents about timelines and failed to provide required state notices when applying for a qualified contract.