We start with a growing problem in our state.
Arizona does not have enough affordable
housing, and it's getting worse.
It is a scene repeated all over the country,
but one of the best tools for building
affordable rentals and homes has a loophole.
Team Twelve's Michael Doudna
reports on how properties that t
tax credits to provide low incoe
housing are now going for market rates.
A home can mean the world.
This is a really good lifeline.
It was nice to me.
It was huge. Because when
I came to this complex.
It was a second chance for me and for
folks like Michael Lucy and Lacretia.
The Ironwood Estates was that
world a community built with low
income tax credits to offer a
roof over their heads that they
otherwise could not afford me
and my children had actually
come out of a situation of
being homeless for 18 months.
I have nowhere to go. The Low
Income Housing Tax Credit Program was
designed to help folks just like this.
Since 1986, the program pays upo
80% of a project if the developr
agrees to keep the homes afford,
usually setting prices to match
renters incomes. It brought security,
It brought stability, It brought hope.
But the problem is,
it may all disappear.
As their apartments are skyrockg
to full price from 1500 to
2400 dollars, I think they
were just trying to get rid
of us so they could rent them
out to people who pay more.
It's very stressful.
See, under the federal guidelin,
after 14 years, any development using
the tax credit can apply to transition
from affordable housing to mark.
Pricing yes, there that that
is definitely happening.
It's happening quite prevalent
prevalently right now and that's
what happened at Ironwood Estat.
Ruby Dillon is with the Arizona Department
of housing and says it's a natil
frustration for communities to e
affordable housing units as we .
This affordable housing crisis.
Each state is looking at their n
qualified allocation plan to see
what they can do to kind of sto.
This this loophole that's in
the in the code now.
Arizona seems to have a programt
should pay dividends in a few y.
But in the meantime,
multiple affordable housing
developments will mutate into
these market rate apartments,
leaving the people left
behind to pay up or move out
you learn to survive.
You pay, you Rob Peter to pay
Paul there's not really much
you can do other than adjust.
And Michael Doudna is joining
us now in the studio.
And Michael, what is Arizona's
plan to deal with this problem?
Really it's a combination of boh
competition in a point system.
Now for years we've seen Arizona
use a point system to determine
who gets this tax credit.
But back in around 2010,
Arizona started offering
a new point category,
basically that if one of these developers
who gets the credit agrees to we
that kind of 1415 year old loope
and agreed to stay on for the full 30 years.
Well, they'd be more likely to t
these developments in the futur.
And since that point in time, w,
anyone who's been awarded this tax credit,
well has waived that, right?
The problem is that doesn't exay
help any of the folks that are g
through this process right now
and won't really see that beneft
for a couple or a few more year.
So technically and legally,
these companies are okay.
They've done the right thing.
They abided by it.
What about these poor families
that you talk to?
The honest answer here is
they're pretty much out of luck.
One person that was not included
in that story because she didn't
want to appear on camera,
she's not homeless right now.
She's staying in her mother's
basement with her kids,
and that's not a permanent solu.
There are other ones that you td
to are kind of in wait and see .
Their leases haven't come up ye,
or maybe they've been giving an
extension for a couple months
and they're hoping that maybe
something will get worked out or
maybe they can find a new prope.
The reality is, though,
is that they're kind of in that
tough spot where it's like maybu
need to brought Peter to pay Par
maybe I just need to take on another job.
Yeah. Which that is tough and
some for some people not possib.
Right. Exactly. Yeah.
All right, Michael. Thank you.