Rental income for low-income housing tax credit (LIHTC) properties rose 8.5 percent in 2019, according to the 2020 Novogradac Multifamily Rental Housing Operating Expense Report. This follows an increase of 4.1 percent in 2018. These two years of substantial rental income growth — after years of lean budgets during and immediately following the Great Recession —allowed for increased spending on operating expenses, in many cases likely allowing LIHTC properties to catch up on previously deferred expenditures. In fact, operating expenses for LIHTC properties saw a substantial year-over-year increase in 2019, growing 6.8 percent over 2018, making it the largest increase in the 10 years that Novogradac has tracked annual operating expenses.
Higher management fees (rising 14.9 percent since 2018) and repairs and maintenance expense (up 12.7 percent) a
