Results from Taking Stock 2019 Survey of Nevada's Tax Credit Housing

Each fall the Nevada Housing Division conducts a survey of the state's Low Income Housing Tax Credit (LIHTC) properties. The LIHTC program is a federal tax incentive program administered by the Internal Revenue Service (IRS) through regulations published under Section 42 of the Internal Revenue Code.[i]  The role the program’s public private partnership plays in affordable housing is large. In 2019, tax credit units currently active or under construction made-up about 9% of the estimated 280,000 multi-family units in Nevada.[ii] The LIHTC program is by far the largest in Nevada, and nation-wide, for producing affordable rental housing. Seventy-eight percent of below-market multi-family housing units in Nevada have or will be constructed or rehabilitated fully or partially with tax credit funding. 

Below are a few of the findings from Taking Stock 2019:

• Overall vacancy rate in the 4th quarter of 2019 for the Nevada LIHTC responding properties was 2.7%, down from 3.1% in 2018 4th quarter.
• LIHTC vacancy rates were substantially higher in mining counties and slightly higher in Washoe County.
• Clark County LIHTC vacancy rates decreased by one percent from 3% in 2018 to 2% in 2019.
• Senior or senior/disabled LIHTC properties had a vacancy rate of 1.5% while family properties had a 3.6% vacancy rate.
• Units with set asides for the lowest income households had a vacancy rate of 0.7% versus vacancy rates of 2.5% for the units with set asides for the highest incomes allowable.
• Surprisingly, vacancy rates for units with rental assistance were higher (4.2%) than those without (2.3%).
• On average in 2019 LIHTC properties reported rents increased 3% in Clark County and 6% in Washoe County over 2018 rents.
• 4th quarter market rents increased 8% in Clark County and 3% in Reno/Sparks from 2018 to 2019.
• One, two- and three-bedroom high rents in LIHTC properties ranged from 30% to 38% lower than market rates on average.
• Broken out by neighborhood, average high LIHTC rents ranged from 10% to 43% lower than market rents in 2019.
• Over 90% of LIHTC properties with no project-based rental assistance have a minimum income requirement. The most prevalent minimum income requirement was that a tenant household have an income equal to or greater than twice the rent.
• Sixty-seven percent of respondents reported losses sustained due to lost rent and eviction proceedings that were less than $2,500 a year. Median midpoint loss was $21 per unit per year.

To see the complete report go to the Nevada Housing Division Database home page:  Taking Stock 2019

[i] Section 42 regulations can be found at:  https://www.irs.gov/pub/irs-drop/rr-04-82.pdf

[ii] Census Bureau, American Community Survey 5‐year estimates for 2018, Table B25024, Units in Structure accessed 2/4/2019. https://data.census.gov/cedsci/ For Nevada Tax Credit Housing by County, an in-house Nevada Housing Division database gives total housing units in tax credit properties as of February 13,, 2020 as 25,828 including units under construction.