Full Citation

Title: Local Housing Development and Money for Neighborhood Schools

Citation Type: Miscellaneous

Forthcoming?: Yes

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Abstract: Each year the Internal Revenue Service distributes over $8 billion in low-income housing tax credits (LIHTC) for rental housing development. I map LIHTC housing to school attendance zones to explore program impact on K-12 public schools, employing a rich dataset of campus level expenditures, enrollments, teacher counts, and neighborhood incomes. I estimate that LIHTC housing causes absolute school spending to increase nearly 9% and instructional spending to increase by 5%. My results imply the average LIHTC investment of $1, 332, 222 generates a $452, 328 school spending spillover, equating to 35 cents for every dollar of housing tax credits. The primary mechanism is a mean enrollment increase of nearly 66 students, half of which are likely subsidized under federal lunch programs, and the whole requiring two additional teachers on average. Overall, the absolute spending increase is efficient as relative spending per-pupil does not change after LIHTC construction.

Url: https://kdwhale.github.io/mysite/whaley_032023.pdf

User Submitted?: No

Authors: Whaley, Kenneth

Publisher:

Data Collections: IPUMS NHGIS

Topics: Education, Housing and Segregation, Land Use/Urban Organization

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