What is low income housing tax credit? - (FAQ)

ANSWER: Low-Income Housing Tax Credit (LIHTC), also called Section 42 credits in reference to the applicable section of the IRS Code, is a federal program administered by VHDA through our Qualified Allocation Plan (QAP).

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What Is the Low Income Housing Tax Credit (LIHTC) Program ?

What Is the Low Income Housing Tax Credit (LIHTC) Program? The Low-Income Housing Tax Credit (LIHTC) program helps create affordable apartment communities with lower than market rate rents by offering tax incentives to the property owners. It …

The Low-Income Housing Tax Credit is a tax credit for real estate developers and investors who make their properties available as affordable housing for low-income Americans. It’s paid for by the federal government and administered by the states, according to …

The Low-Income Housing Tax Credit (LIHTC) program helps create affordable apartment communities with lower than market rate rents by offering tax incentives to the property owners. It does not offer tax credits to the tenant renting the unit. LIHTC properties may contain market rate units that are not financially assisted, in addition to reduced rent LIHTC units under a tiered rent structure

There are three credit rates used in calculating the low-income housing tax credit: * A 9% annual credit is applied to eligible construction and “substantial” rehabilitation costs * A 4% annual credit is applied to the acquisition cost of existing buildings to be rehabilitated

What is Low-Income Housing Tax Credit?

The Department of Housing and Urban Development (HUD) has declared that “the Low-Income Housing Tax Credit (LIHTC) is the most important resource for creating affordable housing in the United States today.” In recent years, the role of the Low-Income Housing Tax Credit has become much more important as federal and state governments grapple with solving a national housing crisis …

The amount of rent that is payable by a low income housing tax credit (Section 42 LIHTC) tenant is referred to as “net rent.” The maximum net rent that is allowed under the tax credit program is derived from a “gross rent” amount; therefore, it is necessary to first calculate the gross rent prior to …

We’re talking about housing for four weeks, thanks to the support of the RWJF! In the last episode, we introduced you to the pathways by which we might think

Last modified: June 22 2021

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