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In the lecture and slides on residential development pertaining to affordable housing, two types of subsidy were described: an operating subsidy in the form of

In the lecture and slides on residential development pertaining to affordable housing, two types of subsidy were described: an operating subsidy in the form of Section 8 rental assistance and a capital subsidy in the form of Low Income Housing Tax Credits. Briefly describe how the operating subsidy can have incentive for operating expenses to increase while the capital subsidy creates an incentive for operating expenses to decrease.

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