The 4% Era
As New York relies heavily on tax-exempt bonds and 4% LIHTC to finance affordable housing, what affordability term does the public receive in return — and should the answer depend on whether a project used 4% or 9% credits?
Start with the basic distinction
4% LIHTC
Typically paired with tax-exempt private-activity bond financing. In New York it is frequently administered through HFA and can be combined with other HCR financing and subsidy programs.
9% LIHTC
Allocated competitively from the state's annual credit authority. New York's 9% program is administered through DHCR/HCR's Qualified Allocation Plan and annual RFP process.
Both are LIHTC. “4%,” “9%,” and “LIHTC” are not three separate programs. A property dataset that lacks the subtype should be labeled unknown, not treated as a third category.
The current property layer contains both 4% and 9% signals — plus a substantial research gap.
Among 2,587 NYC LIHTC property records in the current enrichment, the normalized subsidy history identifies 4%, 9%, both, or an unresolved subtype. These are property-level research signals, not a claim about the share of annual LIHTC production.
Why this matters: “unknown subtype” is itself a data-quality finding. It should trigger research, not be converted into a false third LIHTC category. See Data Note 01 for ownership and federal-overlap signals →
The research question
Affordable Forever will measure how New York's 4% and 9% portfolios differ by year, geography, project size, construction type, ownership and preservation timing — then compare the affordability requirements attached to the actual financing pathways.
What we will analyze
- 4% and 9% LIHTC records by year and assisted units.
- New construction versus acquisition/rehabilitation.
- NYC versus statewide patterns.
- For-profit, nonprofit and unknown ownership where data permit.
- Other subsidies layered into 4% and 9% projects.
- Current HCR/HFA QAPs, term sheets and regulatory agreements.
- How federal policy changes affect the future 4%/9% mix.
- Whether preservation/resyndication adds longer restrictions later.
Why this is timely
Federal rules governing the 4% bond-financing threshold and state 9% allocation authority have recently changed, while New York continues to maintain separate 4% and 9% allocation/financing systems. That makes the next generation of LIHTC production a particularly important moment to ask what affordability term should accompany expanded production.
What we need before publication
The preliminary NHPD analysis is useful for hypothesis-building, but final production estimates should be rebuilt from current HUD/HCR/HFA award and property data, deduplicated at the project level, and documented so another researcher can reproduce the result.