Dead reckoning: nobody does the real math on affordable housing

"The total public subsidy per unit—what taxpayers at all levels contribute to produce one deed-restricted affordable home—is not tracked. I thought this was a Colorado issue, but it's not. From what I can tell, no state tracks the total public subsidy per affordable unit across all sources. Neither does the federal government."

"Colorado enacted a law in 2021 requiring an annual report on housing subsidy spending. That report is published each year diligently. It only includes the dollars managed by the state's own Division of Housing. The federal tax credits, local grants, land donations and fee waivers applied to the same projects are not counted."

"To focus solely on the cost of producing new affordable housing, we need to set aside rental assistance—the Housing Choice Vouchers and project-based Section 8 contracts that help low-income households pay rent on existing units. These programs are important, but they provide operating support; they do not build new housing."

Colorado and other states lack comprehensive data on total public subsidies per affordable housing unit. Colorado's 2021 law requires annual reporting on state Division of Housing spending, but excludes federal tax credits, local grants, land donations, and fee waivers applied to the same projects. This fragmented tracking prevents accurate assessment of taxpayer contributions to affordable housing production. The Government Accountability Office has identified this national gap for years without congressional action. Annual capital subsidies for affordable housing construction and rehabilitation total approximately $20-25 billion nationally. Distinguishing between capital subsidies for new construction and operating assistance like Housing Choice Vouchers is essential for understanding true production costs.

Read at www.housingwire.com