Best Practices to Prevent Substandard Housing in Low-Income Housing Tax Credit Properties: An Examine of Replacement Reserve Policies in Texas’ LIHTC Program

Adequately funded replacement reserves play a critical role in the long-term financial and physical viability of Low Income Housing Tax Credit (LIHTC) properties but are often inadequate to address a property’s capital needs. This report examines Texas’ policies related to replacement reserves at LIHTC properties and how these policies could be improved to help ensure LIHTC properties remain in good condition throughout their affordability term.

• Best Practices to Prevent Substandard Conditions in Low-Income Housing Tax Credit Properties