How does Lihtc program work?

About the LIHTC The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Investors’ equity contribution subsidizes low-income housing development, thus allowing some units to rent at below-market rates.

Does Texas have low-income tax credits?

The Low-Income Housing Tax Credit (LIHTC) program is the largest affordable rental housing program in Texas and the United States. In Texas, the Texas Department of Housing and Community Affairs (TDHCA) administers the program and allocates the credits via an annual Qualified Allocation Plan.

What is the Lihtc program?

Created by the Tax Reform Act of 1986, the LIHTC program gives State and local LIHTC-allocating agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households.

How long does it take to get approved for Lihtc?

Applying for a Tax Credit community can be a time-consuming process. Due to all the requirements and requests, it can sometimes be overwhelming. However, if you are dedicated to the process and are both responsive and accessible during this time, typically it takes about two weeks to be approved if you are qualified.

What is LIHTC program?

Overview.

How does LIHTC work?

The LIHTC provides funding for the development costs of low-income housing by allowing an investor (usually the partners of a partnership that owns the housing) to take a federal tax credit equal to a percentage (up to 70% or 30% of PV (Property Value) depending on the credit type) of the cost incurred for development of the low-income units in a

How do I apply for affordable housing assistance?

Contact the local HUD office listed in the government section of the phone book. You will be directed to a local housing authority office. Call for an appointment. Ask whether you will need to bring in any information or documentation such as pay stubs or benefits statements. Go in and fill out an assistance application.