Since the late 1980s, the Low-Income Housing Tax Credit (LIHTC) program has funded the bulk of subsidized development nationwide, enabling the construction of over 100,000 units targeted to lower income households in California alone (California Tax Credit Allocation Committee 2009c). Yet, by not encouraging the siting of projects in racially integrated areas, the Department of the Treasury's Internal Revenue Service (IRS), which administers the program, has failed to enforce Title VIII of the 1968 Fair Housing Act. A major concern is that units funded through the program, specifically those targeted to families, are concentrated in poor, minority communities that feed into underperforming schools. This study tests this claim by examining how siting decisions affect families' neighborhood conditions and educational opportunities in Southern California. Between 2000 and 2005, the average LIHTC unit targeted to families was located in a high poverty, predominately Latino neighborhood. Poverty was a key determinant of a neighborhood's receipt of LIHTC family units, with a 10% increase in a neighborhood's poverty rate in 2000 associated with an 87% increase in the odds of receiving family units during the following five years. More heavily Latino neighborhoods, as well as those with existing LIHTC family developments, also were more likely to receive family units. (Contains 11 tables, 3 figures, and 46 footnotes.) [Foreword by Gary Orfield.]