How to Make Broadband a Priority in Affordable Rental Housing Development

Many residents of affordable rental housing nationwide continue to lack access to broadband in their homes, but effective use of a long-standing federal tax credit can help close the gap in those housing units not funded by the US Department of Housing and Urban Development (HUD). Recognizing the critical importance of high-speed internet access, a HUD rule effective since 2017 requires that broadband infrastructure be installed in new and rehabilitated federally assisted multifamily housing. This rule is an important step toward improving broadband access for households in affordable rental housing, but HUD-funded units represent only a fraction of new affordable housing. States set threshold requirements for new developments and then identify additional priorities through a scoring system in the states’ qualified allocation plans (QAPs). For example, Massachusetts awards additional points for climate-resilient design. QAP requirements heavily influence what affordable rental housing gets built and that means this process presents an opportunity to address broadband needs. Many states include broadband and digital literacy incentives in their QAPs, though the specifics vary. Among the approaches are incentives for in-unit wiring, provision of ongoing service, common area access (such as computer labs for residents), or digital skills training. These features can be requirements for new Low-Income Housing Tax Credit (LIHTC) developments or encouraged by providing additional points in the plan calculations. While updating QAP requirements can ensure all new LIHTC properties have broadband access, the Infrastructure Investment and Jobs Act (IIJA) funds will be essential to connecting existing properties that are not connected or under-connected.