Low-Income Housing Tax Credits at Work in St. Louis

John Wuest, president of the St. Louis Equity Fund, takes St. Louis Fed guests on a bus tour to see the city's rental developments that were completed with the help of low income housing tax credits (LIHTC). Highlights include new housing on the site of old sky-rise tenements, such as Darst-Webbe on the south side, and renovations of existing structures into low-income housing.

In the current economy, with homeownership becoming more difficult for some people, the need for rental housing has become increasingly important. At the same time, the market for Low Income Housing Tax Credits (LIHTCs), a major source of capital for the development of rental housing, has experienced a serious downturn. This market contraction has resulted in stalled developments across the country. Because of the slump in the production and preservation of rental units, the Board of Governors of the Federal Reserve System, in collaboration with the Federal Reserve Bank of St. Louis, asked experts to suggest ideas for bolstering the LIHTC program.

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Education

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• Community Development