In a recent opinion piece for the Syracuse Post Standard, LISC New York Senior Executive Director Valerie White and LISC Senior Vice President for Policy Matt Josephs highlight how federal tax credits are being leveraged to address housing shortages in Syracuse. These kinds of public-private partnerships are enabling local developers to construct affordable homes, revitalize neighborhoods, and provide essential housing options for residents. The expansion of such credits nationwide, moreover, including through the Neighborhood Homes Investment Act, can help close the gap between construction or renovation costs and home value to mitigate the housing crisis.
The op-ed below was originally published by Syracuse Post Standard:
Syracuse shows how a federal tax credit could build more houses
By Valerie White & Matt Josephs, LISC
For too many families across the United States, the dream of homeownership is slipping out of reach (“New York wants to build cheaper homes. They’ll test one on a vacant lot in Syracuse,” Dec. 5, 2024). While much of the policy focus on housing affordability has centered on increasing the supply of rental units, homeownership opportunities for low- and middle-income families are becoming increasingly rare. The high cost of construction often makes it unprofitable to sell homes at prices these families can afford.
A recent pilot project in Syracuse offers a glimpse of what is possible when public investment supports innovative approaches to address this challenge. With assistance from New York state, the Greater Syracuse Land Bank is transforming a vacant lot in the Valley neighborhood into an affordable, energy-efficient home. Built by Champion Homes, a modular housing manufacturer, the project will cost $260,000 to $280,000 to construct but will be sold to a low- to moderate-income buyer for just $130,000 to $150,000.
This initiative demonstrates the potential for smart public-private collaboration, but it also highlights the systemic issues that require broader federal policy solutions. That’s where the Neighborhood Homes Investment Act (NHIA) comes in.
The NHIA addresses the same challenges the Syracuse project seeks to overcome: the inability to close the gap between what it costs to build or renovate a home and the value of the home. This federal legislation creates a tax credit that bridges this divide, unlocking private capital to fund new homes and substantial renovations in communities that have long been overlooked.
This isn’t just theory. The NHIA is modeled after the highly successful Low Income Housing Tax Credit, which has built close to 4 million affordable rental units since it was signed into law in 1986. But unlike LIHTC, the NHIA focuses on owner-occupied housing, helping families achieve stability and wealth-building opportunities through homeownership.
With bipartisan support from over 120 lawmakers in the House and Senate, the NHIA could transform the housing landscape, enabling the construction or rehabilitation of 500,000 homes over the next decade. These homes would not only serve families earning up to 140% of their area’s median income but also lift entire communities by stabilizing property values, attracting investment, and strengthening local economies.
The NHIA tackles one of the most entrenched barriers to community revitalization: distressed neighborhoods where housing stock is too deteriorated to attract buyers, and where the absence of new development suppresses property values. By filling this gap, the NHIA turns vacant lots and dilapidated properties into opportunities for affordable, quality homes.
Consider the Syracuse project. Without New York’s program support, the $150,000 difference between the home’s construction cost and its sale price would leave the property undeveloped, perpetuating blight in the neighborhood. Through tax credits, the NHIA closes that gap while also ensuring local governments benefit from increased economic activity. Families have stable homes, and communities see renewed vitality.
Critically, the NHIA aligns with fiscal responsibility. Tax credits are only claimed after homes are completed, inspected and occupied. This “pay-for-success” approach ensures accountability and minimizes risk, making it an attractive policy for private investors and public stakeholders alike.
The housing crisis is especially acute in New York. In New York City, the median price per square foot stands at an astonishing $1,519 — 20 times higher than cities like Cleveland or Detroit. Meanwhile, cities like Syracuse face the opposite challenge: Construction costs exceed what buyers can afford, perpetuating disinvestment.
Accordingly, New York state’s decision to invest in closing the affordability gap for single-family homes is a step in the right direction. At the Local Initiatives Support Coalition (LISC), we have facilitated the financing of 2,788 affordable single-family homes since 2022, turning $154.5 million in investment into $757 million in total development activity. This level of support for affordable housing demonstrates how strategic public-private partnerships can catalyze transformational change, proving that targeted investment is not only possible but also highly effective.
Congress will be seeking to enact a significant tax bill in 2025. NHIA needs to be included in this legislation, so that communities have the necessary tools to close the value gap, stabilize neighborhoods, and ensure every family has the chance to achieve the American Dream.
View the original op-ed published by Syracuse Post Standard [+]...
About the Authors
Valerie White, Senior Executive Director, LISC New York
Valerie White, Senior Executive Director, is responsible for leading the expansion strategy to promote LISC's statewide efforts to create an economic and community development ecosystem that addresses deep rooted systemic inequities. Through the usage of capital investment, policy and legislative advocacy, and programmatic initiative design and delivery, she elevates LISC's role as a key voice among legislative, government, private sector, philanthropic, and nonprofit/community partner stakeholders across New York. Valerie has more than 30 years of experience across private, public, and non-profit sectors.
Matt Josephs, Senior Vice President, LISC Policy
Matt manages the team that is responsible for developing LISC’s federal policy agenda; communicating this agenda to LISC employees, board members, funders and other stakeholders; and pursuing this agenda through engagement with members of Congress and other federal officials.
@LISC_policy