Supportive housing funded in part by the Low-Income Housing Tax Credit (LIHTC) has a long history of success, delivering benefits for both residents and investors. As the tax-credit market has become more competitive, many investors and syndicators have asked questions about the risk and profitability of permanent supportive housing compared to affordable housing. Is permanent supportive housing stable over time? Does it produce adequate returns?
Enterprise Community Partners, Inc. (Enterprise) and the Corporation for Supportive Housing (CSH) jointly conducted this operating cost study to help address these questions in more detail. While past research has found that on an aggregated basis supportive housing performs well compared to other LIHTC projects, this study takes a closer look at the property level to provide analysis of individual operating costs. The major finding of this report confirms that permanent supportive housing is financially solid.