Do the developers need government assistance? The effect of TIF policy on affordable housing construction budgets

Abstract Scholars and practitioners are paying close attention to affordable housing. Even in the absence of a broad comment on the financial constraints that developers face in providing affordable housing, almost all authors agree on the importance of government subsidies. A review of recent literature reveals that cities have used Tax Increment Financing (TIF) to engage residents in affordability. Nonetheless, this policy mentions housing developers without elaborating on their benefits. This paper fills that void by investigating developer profits as a result of TIF policies. The findings show that the Benin government implemented a TIF policy in 2008 to alleviate construction budget constraints, allowing residents to live in low-cost housing.