As a result of the credit market meltdown, the Low-Income Housing Tax Credit (LIHTC) program, the nation's primary mechanism for producing and preserving affordable rental housing, was severely disrupted in 2008 and 2009. In response, the government created two programs as part of the American Recovery and Reinvestment Actthe Tax Credit Assistance Program (TCAP) and the Tax Credit Exchange Program (Exchange). This paper examines the experience to date with these two stopgap measures. Its purpose is to assess whether they are effective and sufficient or if additional actions may be necessary to mitigate the vulnerabilities in the LIHTC program.
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