The Low Income Housing Tax Credit Program is an affordable housing program for individuals with fixed or low incomes. The Program was created by Congress in 1986 as part of the Tax Reform Act and is administered by the Internal Revenue Service.
Benefits to You
The benefits to Residents living in such housing are a newly constructed or renovated apartment home and rents are lower than the market rate. The rents are 30% of either 50% or 60% of the area median income as published by HUD, often resulting in rents substantially lower than other comparable apartments. Each year the rents are reviewed to ensure that they remain affordable in compliance with the Program
Difference from Other Housing Programs
This Program is not a subsidized housing program. Each Resident is responsible for the full amount of rent each month. The rental amount is NOT based on the individual household income. It is based on the present income limits in the area.
Incentive to Owners
Owners are offered a reduction in their tax liability in exchanging for offering quality housing at these lower rents. To receive this reduction, the Owners must certify that the Residents are qualified under the Program requirements and are paying the correct amount of rent.