The increasing polarization of modern politics combined with the increasing cost burden housing provides for many families has placed the Low Income Housing Tax Credit (LIHTC) under scrutiny. With the advent of urbanization, increasing cost of construction materials, and in fact that in America people like to live alone due to this reason housing costs in the US have skyrocketed in a number of places. The federal government has to start becoming involved in housing. The Federal Housing Administration offered potential homeowners insurance on their mortgages to encourage homeownership and economic development. Public housing, the first attempt at an affordable rental program in the US, is owned and managed by government bodies. They would be able to set rents below the market rate in order to provide affordable housing for low-income individuals.

The federal government first started becoming involved in housing in 1934 (Gross 2017). The Federal Housing Administration offered potential homeowners’ insurance on their mortgages to encourage homeownership and economic development. This droves suburbanization throughout the mid-20th century, but selective lending practices also contributed to the racial wealth gap. It also did little to nothing to address the poorest individuals and families, who were likely renters. Public housing, the first attempt at an affordable rental program in the US, are owned and managed by government bodies. Theoretically, these entities would be able to set rents below market rate in order to provide affordable housing for low-income individuals since their goal was not to maximize profits. Unfortunately, these developments became known for being undermanaged and being community “eyesores” (National Low-Income Housing Coalition 2015). In addition, they tended to concentrate the low-income folks into certain neighborhoods, perpetuating social stereotypes and not providing opportunities for upward mobility.