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The impact of LIHTC program on local schools

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  • Wenhua Di
  • James C. Murdoch

Abstract

The low-income housing tax credit (LIHTC) program has developed over two million rental homes for low-income households since 1986. The perception of deterioration in school quality has been a main reason for community opposition to LIHTC projects in middle-and upper-income areas. In this paper, we examine the impact of LIHTC projects on the nearby school performance. The LIHTC projects tend to have positive and statistically significant impacts on school performance the year they are placed in service and this finding is robust to various specifications. Offsetting these, the one year lag effects are negative and of similar or smaller magnitude.

Suggested Citation

  • Wenhua Di & James C. Murdoch, 2010. "The impact of LIHTC program on local schools," Working Papers 1006, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:1006
    Note: Published as: Di, Wenhua and James C. Murdoch (2013), "The Impact of LIHTC Program on Local Schools," Journal of Housing Economics 22 (4): 308-320.
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    References listed on IDEAS

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    Cited by:

    1. Corianne Payton Scally & Richard Koenig, 2012. "Beyond NIMBY and poverty deconcentration: reframing the outcomes of affordable rental housing development," Housing Policy Debate, Taylor & Francis Journals, vol. 22(3), pages 435-461, February.

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    Keywords

    Housing subsidies; Housing policy; Education; Poverty;
    All these keywords.

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