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395 The housing supply is aging. Given the change in tax benefits and the possible expiration of rental subsidies, owners face diminished after-tax returns and reduced cash flows with which to meet repair and maintenance needs. In addition, the Tax Reform Act of 1986 now disallows the use of passive losses to offset income from such sources as salary, interest, dividends, and reduces other tax advantages for investors of low-income housing. The conversion of a significant number of formerly subsidized low- income rental units to market rate housing will have an impact on tenants as follows: Limited income households will be subjected to tremendous rent increases or displaced as the buildings are converted to market rate or sold to investors. Alternative housing at affordable rents is not readily available for those who are displaced. A number of the residents of units in questions are elderly for whom a move or eviction may be especially difficult. Due to the high cost of new construction, it could be prohibitively expensive to replace this source of low- income housing once it converts to market rate rentals or condominiums. INVENTORY OF UNITS AT RISK State law requires that the housing element identify at risk affordable housing for the planning periods of July 1, 1989 through June 30, 1994, and July 1, 1994 through June 30, 1999. The following table of the City's assisted housing projects contains information on assisted affordable housing projects for these planning periods. The format of inventory includes data for project ownership, financing, unit configuration, level of affordability, tenant type, earliest date of subsidy termination and term of affordability. The intent of the housing element amendment is to focus preservation efforts on the initial five year planning period.