In spite of numerous programs and policies that encourage private investment in affordable housing, particularly after hurricane disaster, insufficient numbers of affordable units exist to meet demand. Some low-income households are displaced in the course of disaster recovery, and others face severe housing cost burdens as demand for affordable housing outstrips supply. Some suggest competitive uses for limited funds impede production. Others suggest that disaster and recovery policies tend to favor homeowners and economic recovery. Little attention has been given to the development decisions of affordable housing developers during disaster recovery. This study examines LIHTC development risk after the 2004 hurricane season. Stated preferences are identified from the public housing agency and LIHTC professionals to identify factors that impede or encourage investment after disaster. Statistical and spatial analysis is used to compare development patterns to risks identified from stated preferences of LIHTC developers. The number of LIHTC units found within storm surge boundaries places communities, households, and owners at significant risk. This study suggests that policy preferences steer LIHTC development to coastal communities in spite of risk. Ultimately, policy can also take steps to encourage mitigation of current and future hurricane risks.
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