Under Construction

Charities find low-income rental-housing projects stalled by chilly investment climate

The financial crisis has dealt a staggering blow to the federal program that is the largest source of financing for low-cost rental housing, stalling hundreds of projects across the country and causing major cash-flow problems for scores of nonprofit groups.

The credits are expected to produce $3-billion to $5-billion in private investments in low-cost housing projects this year, compared with $9-billion in 2007, before the financial crisis hit.

The problem is that while the