Low-Income Housing Tax Credit (LIHTC) Guide — How It Supports Affordable Housing
📌 What LIHTC Is and Why It Matters The Low-Income Housing Tax Credit (LIHTC) is a federal program that encourages private developers to build and maintain affordable rental housing. Instead of direct cash benefits to tenants, it provides tax credits to property owners who agree to keep rents affordable for low-income households. LIHTC plays a major role in expanding and preserving affordable housing across the United States. 📊 How the LIHTC Program Works • The federal government allocates tax credits to states each year • State housing agencies award credits to developers through a competitive process • Developers use the credits to attract investors and raise project funding • In exchange, they commit to providing affordable rents for a set period • Projects must meet income and rent restrictions to keep the credits 💵 Who Benefits from LIHTC Properties • Low-income families seeking affordable rental housing • Seniors needing stable, lower-cost apartments • Indivi...