Access to Opportunity and Locational Equity in the Low-Income Housing Tax Credit Program: A Case of the Seattle Metropolitan Area

Abstract

There is a severe shortage of affordable housing in the United States. The main funding source for the construction and preservation of affordable housing is through the Low-Income Housing Tax Credit (LIHTC) program. Researchers have focused on the intersection of housing and access to opportunity, noting the socio-economic and health benefits associated with proximity to opportunity. This begs the question: are limited affordable housing dollars spent in ways that produce optimal outcomes for low-income residents? This study uses federal housing data and HUD AFFH access to opportunity indices to establish if for-profit and non-profit developers in the Seattle Metropolitan Area locate their developments in areas with high levels of access to opportunity. The findings indicate that developers face a tradeoff between good access to transit and environmental health and that their mission may play a role in the site selection process.