4% Low Income Housing Tax Credit Program (LIHTC)
The 4% Low Income Housing Tax Credit Program (LIHTC) is a companion financing tool to the Mortgage Revenue Bond Program (MMRB). It finances these MMRBs through the sale of tax-exempt private activity bonds.
LIHTCs can be syndicated to generate part of the required equity a borrower must contribute to the financing, or can be utilized to offset the borrower’s tax payments.
To realize the benefits of this federal program, developers/sponsors are required to do one of the following:
- Set aside at least 20% of their units for individuals or families earning at or below 50% of the area median income (AMI)
- Set aside at least 40% of their units for individuals or families earning at or below 60% of AMI adjusted for family size
Apply for the MMRB/LIHTC
If you’d like to apply for the MMRB/LIHTC, please review the program guidelines and fill out the application.
Below are additional resources to help familiarize yourself with the LIHTC: