Trump Tax Law’s Affordable Housing Boost Hits Snag (1)

The US government’s largest affordable housing program was supposed to be supercharged by President Donald Trump’s signature tax law. So far, that jolt hasn’t arrived.

That’s because, investors and developers say, their efforts to take advantage of the dramatic expansion of the Low-Income Housing Tax Credit have bumped up against some unintended consequences.

In particular, the law increased the potential size of any given affordable housing development deal eligible for the credit – but that, in turn, means few banks are able to finance them under the complex rules of the program.

“The market has slowed pretty ...