New Roadmap Focuses on Wealth Building for LIHTC Residents

Boston, MA — The Asset Builders Alliance, a cross-sector partnership of Compass Working Capital, Housing Partnership Network, National Council of State Housing Agencies (NCSHA), and Stewards of Affordable Housing for the Future (SAHF), today released Building Financial Assets for Residents in LIHTC Communities, a new white paper providing State Housing Finance Agencies (HFAs), property owners, and policymakers with practical, evidence-informed models for integrating asset building into Low-Income Housing Tax Credit (LIHTC) properties at scale.

The paper is based on interviews with over 30 stakeholders — including LIHTC developers and owners, State HFAs, and financial health service providers — and financial modeling of six implementation scenarios spanning low-cost pilots to comprehensive program designs.

Key findings include:

Meaningful asset-building is possible. Six modeled scenarios demonstrate that LIHTC residents can accumulate $2,000–$6,000 in savings over five years through combinations of rent rebates, annual bonuses, and capitalized reserves — using existing tools and infrastructure, without new legislation.

There is a clear business case. Eviction costs exceed $5,000 per unit. For a typical 50-unit property, preventing even a small number of evictions annually can offset the cost of a modest asset-building program.

The racial wealth gap connection is direct. Renters of color make up the majority of LIHTC residents. Without a mechanism to build savings or wealth through renting, this population remains locked out of the financial security that homeownership provides for others.

"LIHTC has done something remarkable — it has provided safe, decent, and affordable housing for millions of families who would otherwise have nowhere to turn. But housing stability and financial security aren't the same thing. This research shows we now have the tools and the knowledge to deliver both. That's an opportunity we can't afford to pass up." – Markita Morris-Louis, CEO, Compass Working Capital

The Alliance's top recommendations include starting with pilots using existing policy tools, adopting a menu-based approach to program design, and working to impact policy across federal, state, and local government. Interested organizations are encouraged to reach out to any of the partner agencies to start the conversation and join the Asset Builders Alliance private LinkedIn community to stay connected.

“State housing finance agencies have made possible millions of affordable homes for very low-income renters, going above and beyond for decades to ensure residents live in high-quality, financially-sustainable homes. This report, reflecting extensive input from housing finance agency staff and key partners, provides creative, actionable ideas that affordable housing owners, agencies, and capital providers can put in place to further help the families they serve thrive and prosper.” — Stockton Williams, Executive Director, National Council of State Housing Agencies

“For decades, the LIHTC program has been the nation’s most effective tool for producing affordable rental housing,”said Eileen Fitzgerald, interim CEO of SAHF. “This research shows how the same platform can also support residents’ financial health and stability by integrating asset-building strategies that help families accumulate savings and move toward long-term economic opportunity.”

The full white paper is available at [https://compassworkingcapital.org/LIHTC-Asset-Building-Paper].

About the Asset Builders Alliance: The Asset Builders Alliance is a cross-sector partnership of Compass Working Capital, Housing Partnership Network, National Council of State Housing Agencies, and Stewards of Affordable Housing for the Future, combining expertise across resident financial health, affordable housing development, and housing finance.

About Compass Working Capital: Compass Working Capital partners with affordable housing providers to run the nation’s largest asset-building program, helping over 7,000 low-income families build more than $35 million in savings to bridge racial and gender wealth gaps.

About Housing Partnership Network: Housing Partnership Network (HPN) is a member-driven network of 120+ affordable housing and community development organizations collaborating to scale innovation and strengthen communities nationwide.

About National Council of State Housing Agencies: The National Council of State Housing Agencies (NCSHA) is a nonprofit, nonpartisan organization created to advance, through advocacy and education, the efforts of the nation’s state housing finance agencies (HFAs) and their partners to provide affordable housing to those who need it.

About Stewards of Affordable Housing for the Future: Stewards of Affordable Housing for the Future (SAHF) is a national collaborative of thirteen multi-state nonprofit affordable housing providers; SAHF draws on members' expertise in the development and operation of service enriched affordable homes, to advance policies and programs across the country that help create and preserve thousands of homes and provide the tools and supports that help residents to thrive.

Media Contact: Purvi Harley, Director of Communication, Compass Working Capital: [email protected]