LIHTC stands for Low-Income Housing Tax Credit. It’s the largest tool for producing and preserving affordable rental housing in the U.S.
How LIHTC Works #
LIHTC provides tax credits to developers that build or renovate affordable housing. These credits are sold to investors to raise equity for the project, reducing the need for traditional loans.
Who Uses It? #
- Affordable housing developers
- Investors and syndicators
- Public housing authorities and nonprofits
? Pro Tip: LIHTC properties must remain affordable for 15 to 30 years, depending on state and federal rules.