By the California Housing Partnership

MIP was created by CalHFA in 2017 to incentivize the construction of new rental housing developments affordable for a mix of incomes between 30% and 120% of the area median income (AMI). As difficulties in financing new affordable homes for households above 80% of AMI without Low Income Housing Tax Credits (LIHTC) became more clear, CalHFA focused more on assisting developers serving households up to 80% of AMI and required greater percentages of homes affordable to very low- (50% of AMI) and extremely low-income families (30% of AMI) to satisfy LIHTC requirements and the newly-competitive tax exempt bond program administered by the California Debt Limit Allocation Committee.
Key findings from the MIP Outcomes Analysis for program years 2019-2021:
- MIP-awarded developments serve households that have an average AMI of 59%, whereas non-MIP developments participating in the bond and 4% LIHTC programs serve households with an average AMI of 47%. 9% LIHTC-awarded developments financed without bonds serve households with an average AMI of 45%.
- MIP-financed affordable homes tend to be less expensive than 4% LIHTC developments but more expensive than 9% LIHTC developments.
- Most MIP-awarded developments are located in Lower Resource Areas as defined by the state Opportunity Maps to Affirmatively Further Fair Housing (AFFH). MIP-awarded developments are located in High Resource areas marginally more often than their LIHTC-financed counterparts.
- 75% of MIP-awarded developments are created by for-profit developers. In comparison, approximately 68% of LIHTC developments have been created by for-profit developers.
Please read our full MIP Outcomes Analysis Memo for details.
To further discuss this memo’s findings, join the conversation on social media with these hashtags: #MIP #mixedincome #affordablehomes
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