housing credit

[unpakwon]

Would you please explain what "housing credit" is in the following?

This organization ... has helped revitalize some of America's poorest neighborhoods... but its bigger accomplishment was creating a low-income housing credit that accounts for some 90% of affordable rental housing in the United States.

Is this a system where they loan money to low-income people with low interest rates?

Thank you.

[SoothingDave]

No, it's where the gov't gives money to people to use to partially or totally cover the cost of housing. The money is in the form of payments directly from the gov't to the landlords.

[Academic Writing]

Agree with Dave. The way the sentence is written, it sounds like a subsidy. There are such things as low-income housing tax credits, housing vouchers (e.g., Section 8), special grant programs for low-income first-time buyers, and other forms of assistance as well. Sometimes terms are used with slightly different meanings in different programs and states so if you have any doubts use the context of the sentence for clues. :)

[unpakwon]

No, it's where the gov't gives money to people to use to partially or totally cover the cost of housing. The money is in the form of payments directly from the gov't to the landlords.

Thank you for the help.

When you said "the government gives money to people...", do you mean the government just gives the money away (not lend or loan) to the people without expecting to be paid back later?

[SoothingDave]

Yes. That's what a "welfare state" is.