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DCA officials say Georgia housing tax credit drives most affordable rental supply
Summary
Department of Community Affairs officials told the committee the federal-state housing credit is the primary tool for creating and preserving affordable rental housing in Georgia, supporting more than 100,000 residents and including a 35% rural set-aside and preservation programs for smaller counties.
Department of Community Affairs officials told the committee on Thursday that Georgia’s federal and state housing tax credits remain the state’s largest tool for creating and preserving affordable rental housing.
“Laos? Georgia tax credit properties are currently home to more than 100,000 Georgia families,” Laurel Hart, DCA’s division director for Housing and Finance, said as she summarized the program’s scale and mechanics. Hart stressed that the federal Low-Income Housing Tax Credit (LIHTC) program is matched by a state credit and uses a pay-for-success model that ties award of federal credits to completed, occupied properties.
The program prioritizes geographic distribution and long-term quality, Hart said, noting a 35% rural set-aside and a rural preservation program designed to sustain smaller properties. She also cited Myrtle Terrace, a senior property that received national recognition and that partners with health providers to offer on-site preventive services.
Committee members pressed staff on tenant eligibility and program limits. Hart said tenants in LIHTC properties generally must meet income limits at or below 80% of area median income, though Georgia’s policy can set lower limits to target local needs. She also said the program uses competitive scoring to encourage partnerships that provide services such as blood-pressure screenings and counseling to improve resident health outcomes.
On scale and funding, Hart told the committee that credits allocated in the most recent cycle supported roughly 2,300 units and that DCA funded about 128 rural properties in the last five years (about 290 properties total funded in that period). She warned that rising construction costs and growing demand make it difficult to keep pace: “we’re finding that rising construction costs and increasing need is causing us to maybe fall a little behind,” Hart said.
The session also clarified how credits and bond programs interact: some preservation and smaller-county projects are supported through partnerships using 4% credits and tax-exempt bonds paired with USDA resources. Hart said DCA leverages private investors and other public financing so the credit is not usually 100% of development cost and pointed to DCA’s monitoring measures to address noncompliance.
The committee asked for more granular, county-level data on where properties exist and on how many units are needed in specific localities. Hart said DCA maintains market and consolidated-plan data and offered to provide additional material to legislators who requested it.
The presentation concluded with staff noting the state also allocates roughly $3.2 million to a State Housing Trust Fund for the homeless; no formal votes or policy changes were taken at the meeting.
