The Low-Income Housing Tax Credit (LIHTCA tax incentive intended to increase the availability of low-income housing. The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental h... More, sometimes pronounced “LIE-tech”) is a special tax credit offered by the federal government to investors as an incentive to create affordable rental housing for low-income families. For housing developments that meet certain established criteria, investors can claim a tax credit equal to a percentage of their costs in creating affordable housingIn general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define af... More.
Generally speaking, to qualify for LIHTCA tax incentive intended to increase the availability of low-income housing. The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental h... More, a developer must designate a certain number of apartment units within the complex as low-income rentals, as well as maintain ongoing compliance. (In other words, low-income housing must remain available only to eligible low-income families.) Since it was established as a law in 1986, the LIHTCA tax incentive intended to increase the availability of low-income housing. The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental h... More has been partly responsible for the creation of nearly 2.5 million low-income rental units nationwide, allowing many low-income families to find affordable housingIn general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define af... More in rental markets where they otherwise couldn’t afford to live.
How does LIHTC affect me as a low-income renter? Can I claim the LIHTC?
As a renter, you don’t benefit directly from the Low-Income Housing Tax Credit, nor can you claim the credit on your taxes. The tax credit is for the investor/developer who builds the apartment. Instead, you see indirect benefit in the form of a certain number of rent-restricted apartments in your area where rent is kept low for qualifying low-income families.
Is my apartment a LIHTC apartment?
If you qualified for the apartment based on having a lower income, chances are your unit exists because of LIHTCA tax incentive intended to increase the availability of low-income housing. The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental h... More. Nearly 90 percent of all affordable housingIn general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define af... More units in the U.S. were built using this tax credit.
Are rents all the same in LIHTC apartments?
No; the rent in a low-income apartment is based on a percentage of the Area Median Income (AMI) for the area in which the apartment is located. The maximum rent cannot exceed 30 percent of the recognized AMI in that area. However, median income can differ greatly in different parts of the country. For example, a low-rent apartment in New York City will cost much more, for example, than a low-rent apartment in Mobile, Alabama.
How do I qualify for a low-rent apartment?
Your eligibility for a low-rent apartment will be based on your income and measured against the median income of the area in which you live. Olympia Management can provide more information about available LIHTCA tax incentive intended to increase the availability of low-income housing. The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental h... More apartments in your area and help you through the process of determining your eligibility. For more information, call us today at 256-894-2382.