Developers

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.

Program Requirements

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

Additional Resources

Below are additional resources to help familiarize yourself with the LIHTC:

• DCHFA Financial Spreadsheets
• 9% LIHTC Program
• The LIHTC Program – The Danter Company
• Affordable Housing Resource Center – Novogradac & Company