KBJR - Duluth Housing Leaders Tackle City's Housing Shortage

News Article

By Kati Anderson

Duluth housing leaders, along with Congressmen Rick Nolan, have a plan to solve Duluth's chronic housing shortage.

The plan involves extending federal low--income housing tax credits.

Congressmen Rick Nolan has thrown his support behind legislation to make those credits permanent.

Low income housing tax credits allows rental property investors to build affordable housing.

These tax credits have been used in Duluth to develop projects like the Harbor Highlands.

Duluth housing leaders say federal dollars play a key role in the city's ability to build more affordable housing projects.

"It's that availability, of that tax credit for housing, that encourages the private sector to be a part of this," said Rep. Nolan. "Of course the federal government has to be a part of it as well."

"That's an incredible tool that has helped develop affordable housing for families, affordable housing for homeless people and people in need," said Pam Kramer, Director of the Local Initiatives Support Corporation (LISC).

The low income housing tax credit program is the nation's largest rental housing production program.

The program finances about 90 percent of all affordable rental housing.

Mayor Don Ness says it's projected that the city will need to provide 4,000 new housing units by 2020 if the population of the city keeps growing.

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