New Health Impact Assessment

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February 2022

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Affordable Housing Health Impact Assessment cover

Health Impact Assessment (HIA) to review impacts of potential changes to Kentucky's Affordable Housing Tax Credit

The Center for Health Equity coordinated The Health Impact Assessment of Kentucky's Affordable Housing Tax Credit, a report that reviews HB 86, a proposed policy intended to increase the number of affordable housing units available to individuals at up to 60% of the area median income (AMI). With a current shortfall of 75,000 units for low-income families seeking housing, the estimated 6,560 additional units from the $12.5 million in tax credits allocated each year for five years ($62.5 million) could make a considerable impact.

Quality affordable housing creates a range of health impacts. Affordable housing expands family budgets to afford more nutritious food, medical care, and utilities leading to better heart health and reductions in chronic disease. It can help families move from unhealthy environments with mold and lead paint to one that is clean and free of contaminants. Clean, safe, stable housing alleviates depression and anxiety, and can also create stability for a person in recovery with substance use disorder (SUD). Ultimately, affordable housing can strengthen the development of a neighborhood, adding jobs during construction, increasing spending in nearby businesses, and building the local economy.

Along with the Affordable Housing Tax Credit HIA, the Center for Health Equity also released an update to the Health Impact Assessment (HIA) for Kentucky’s Child Care Assistance Program (CCAP). While the initial report assessed the health outcomes of CCAP funding related to early childhood education (ECE) and employment, the update addresses proposed HB 120, a bill intended to expand eligibility for Pre-Kindergarten, a critical part of the ECE landscape. ECE provides educational and developmental enrichment for children, increasing the ability for parents to seek new employment and educational opportunities, and supporting a child care workforce that has been increasingly experiencing a shortage due to poor job quality.