Trump Tax Plan, Not Even On Drawing Board, Is Already Roiling Rental Housing
Developers, financiers, and owners of low- and moderate-income rental housing are scrambling for patches for lost equity
The housing development known as A.O. Flats, announced in March 2016, was hailed as exactly what Boston needed: affordable rental homes in a mixed-use building, just steps from a transit station. It would mean 78 middle-class families and residents – nurses, teachers, service workers – could afford to rent in Jamaica Plain, one of the city’s most sought-after neighborhoods, an area where 2-bedroom apartments are renting for about $2,000 per month, according to Zillow.
A.O. Flats was in a sweet spot, according to Bart Mitchell, president of The Community Builders, the nonprofit housing developer behind the project. “People embraced the idea of housing production being needed near transit, in a neighborhood for people with higher incomes but having it be for moderate incomes as well.”
The project was supported by the City of Boston and The Community Builders and had funding through a national initiative called the Low Income Housing Tax Credit, a program that’s enabled more than 43,000 housing units to be built over the past three decades.
But in November, after Donald Trump’s surprise victory, planned construction on A.O. Flats came to a screeching halt. The LIHTC distributes federal tax credits to the states, which work with developers to determine the best projects to meet local needs — everything from apartments to senior housing.