- Created: Thursday, 28 February 2013 11:41
On February 22, U.S. Representative Erik Paulsen met with housing advocates, providers, and a formerly homeless young man to discuss an issue facing too many homeless students in Minnesota. This troubling issue stems from an unintended consequence of a well intended rule in the Low Income Housing Tax Credit program.
The Low Income Housing Tax Credit (LIHTC), established in 1986, is responsible for most of the affordable rental housing produced nationwide, including some properties that house formerly homeless youth. To prevent LIHTC properties from being used as college dormitories, legislators enacted the "Student Rule," which stipulates that full time students cannot live in a LIHTC low-income unit as head of the household. While this seemingly common sense rule was meant to prevent precious resources from being used for college dormitories, the Student Rule also prevents formerly homeless students living in LIHTC units from attending high school or college full time.