Low Income Housing Guide

Basic Info on the LIHTC or Tax Credit

February 24th, 2009 | by editor |

The Low Income Housing Tax Credit (LIHTC) is basically a housing support initiative from the government that began in 1986. The LIHTC aims to give both individuals and families with low to moderate income. A little more than a dollar but not more than two dollars (which is adjusted based on the inflation rate) per person in each state is allotted to funding housing projects for qualified households. There is a table of income based on the size of the household that determines who is eligible for the Low Income Housing Tax Credit. While the LIHTC is a government project, the developments themselves are privately owned, but the companies receive 10 years worth of tax cuts as a sort of payment for financing a low income housing project.