Tax Credit Program




Low Income Housing Tax Credit (LIHTC)


Affordable Housing Tax Credit


·       Created as part of tax reform act of 1986

·       Replaced previous policies with a successful private-public partnership that ensures the development of housing for low- and moderate-income Americans

·       Since its inception, the program has financed the construction of more than 2.5 million affordable family and senior  homes


Tax Credit Application Process

·       Department of the Treasury issues tax credit allocation authority to all States  

·       The Texas State agency (TDHCA) develops criteria by which the tax credits are allocated to developers in order to construct housing

·       Properties must remain affordable for at least 30 years.

·       The tax credits, which are awarded via a competitive application process, are syndicated from the developers to investors, who in return provide equity for construction financing

·       Provides rental homes for families at or below 60 percent of area median income