Sen. Chuck Grassley is looking into whether the Low-Income Housing Tax Credit (LIHTC) works as intended. He made the following comment on a new report from the Government Accountability Office (GAO) on the role of syndicators. Grassley’s comment on a prior report is available here.
“The fact that the GAO needed to issue a separate explanation of the role of syndicators shows you just how complex this program has become. The fact that GAO had to rely on a third-party contractor database for syndicator information because neither the IRS nor HUD maintains that information tells you that no one is minding the store. The complexity underscores my concern that the IRS and HUD don’t seem to know whether a multi-billion-dollar program for low-income housing has worked as intended. The GAO has another report under way to look at overall costs of LIHTC projects including syndicator earnings, construction costs, developer fees and any cost-containment strategies. These findings will help Congress know whether the tax credit is serving low-income people who need housing and the taxpayers who deserve accountability.”