JEFFERSON CITY, Mo. – Some Missouri legislators ended their careers this session trying to cap or end low-income housing tax credits (LIHTC). Meanwhile, the wait lists for developments funded by these credits have ballooned, leaving many Missouri working class families and seniors with few housing options.
Nationally, three of every four renter households who are eligible for housing assistance never receive it, according to a recent report from the Bipartisan Policy Center’s Housing Commission. Because demand for affordable housing so far exceeds supply, they are often allocated through lengthy waiting lists and lotteries.
Missouri Workforce Housing Association Executive Director Jeff Smith reiterated this concern. Although the 2014 LIHTC awards allocated funding for the development of 2,592 new units in Missouri, he said “it would take 50 years at our current pace to even begin to catch up with demand.”
Many legislators are looking for ways to accelerate these public-private partnerships which were cut in 2009 by $124 million, from a peak of $316 million to $192 million. Kit Bond, former U.S. Senator (R-MO, 1987-2010) and current co-chair of the Bipartisan Policy Center’s Housing Commission, recommends increasing LIHTC’s current funding levels by 50 percent.
Rep. Rocky Miller, R-Osage Beach, views senior LIHTC developments as our duty to provide for those now entering retirement—who Miller calls the “greatest generation.”
“We have to do something to take care of these people who took great care of us,” Miller said. “When we have the chance to do something for the elderly, we need to get the government out of the way and break ground on new construction.”
For the past five years, LIHTCs have helped build an average of 831 new senior units each year in Missouri. Quality affordable housing for seniors not only allows the fast-growing baby boomer population to live independently with an enhanced quality of life, but also saves the state approximately $7.4 million in Medicaid costs each year.
In February 2007, Geneva Huddelston and her husband transitioned into Chapel Hill Commons, a senior LIHTC development in Jefferson City. The Huddlestons enjoy the social activities available and the companionship of the other residents.
“It took a very, very long time to get in, but it was worth the wait,” Huddleston said.
It’s testimonials like the Huddlestons’ that Rep. Vicki Englund (D-St. Louis County) finds so worthwhile. “These housing developments make sense on every level,” said Englund. “They are the right decision for the quality of life of our citizens and they just make economic sense.”
Rachael Herndon was the editor at The Missouri Times and also produced This Week in Missouri Politics, published Missouri Times Magazine, and co-hosted the #MoLeg podcast. She joined The Missouri Times in 2014, returning to political reporting after working as a campaign and legislative staffer.
Rachael studied at the University of Missouri – Columbia. She lives in Jefferson City with her husband, Brandon, and their two children.
