80/20 housing

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In the United States, 80/20 housing is multifamily housing program that meets federal guidelines for tax-exempt financing.[1] As the United States continued to experience shortages in affordable housing,[2] the 1986 Tax Reform Act, responsible for the creation of the Low Income Housing Tax Credit (LIHTC), was the first step towards a solution, encouraging the construction of rentals for lower-income households.[3] Specifically, the 80/20 housing structure is effective in high-rent areas for which 80 percent of the buildings apartments are rented at typical market rate, while 20 percent are specific to low- and moderate-income Americans. [4] As far as who qualifies, State Housing Finance Agencies (HFAs) define low income as income below 80 percent of regional median income.[5]

This helps to insinuate diversified income projects while also allowing granting developers funds at lower interest rates.[5] It is a national priority to provide low- and moderate-income families affordable housing, and through the 80/20 program developers can maximize public benefits, while still remaining fluid to changes in the market and financing structure.[6][5]

According to these guidelines, 20 percent of units must be rented to low-income households.[7]


  1. ^ "Frequently Asked Questions: For Apartment Seekers and Homebuyers:What is the 80/20 Program?". Department of Housing Preservation and Development. The City of New York. Archived from the original on April 15, 2012. Retrieved May 2, 2012.
  2. ^ "Mixed-Income Housing: Unanswered Questions" (PDF). Retrieved November 16, 2022.
  3. ^ Low Income Housing Tax Credits (LIHTC); Multifamily housing finance; Low Income Housing Tax Credit Program. Oregon.
  4. ^ Agovino, Theresa (February 18, 2008). "Tax-exempt housing funds are drying up". Crain's New York Business. 24 (7). ProQuest 219147300.
  5. ^ a b c United States (1986). Tax-exempt multifamily rental housing bonds: hearings before the Subcommittee on Oversight of the Committee on Ways and Means, House of Representatives, Ninety-ninth Congress, first session, June 21; and August 1, 1985. Washington: U.S. G.P.O. : For sale by the Supt. of Docs., U.S. G.P.O.
  6. ^ Nwogugu, Michael C. I. (February 1, 2004). "Legal, Economic and Strategy Issues in Housing in the New Economy". SSRN 883571.
  7. ^ "Affordable Housing Information" (PDF). Affordable Housing Information Kit 13th Edition. www.actorsfund.org. Retrieved May 2, 2012.