The Low-Income Housing Tax Credit (LIHTC) Program

is a tax incentive intended to increase the availability of low income rental housing. The tax credit is a credit against regular tax liability for investments in affordable housing properties constructed, acquired and rehabilitated after 1986.

 

 

2017 QAP and Funding Round Documents

 

Just the facts

Program Details

  • To qualify for tax credits, the proposed development must involve new construction or substantial rehab of existing units occupied by low-income individuals and families.
  • Prospective applicants apply for housing tax credits by submitting an application to the LHC. Applications are received and evaluated under the Qualified Allocation Plan (QAP) at least once a year.
  • The QAP provides information on the calendar year program including minimum project requirements, competitive criteria and underwriting criteria.
  • The amount of credits to which a project is eligible is based on the amount of qualified development costs incurred and the percentage of low-income units within the development.
  • Each qualified tax credit development must include a minimum percentage of units to be set aside for eligible low-income tenants. These set-aside units must also be rent restricted.

Additional Info

  • The LIHTC is received each year for ten years, the period the taxpayer claims the credit on his/her federal income tax return.
  • The Owner must maintain the income and rent restrictions continuously for 15 years; known as the “compliance period."
  • Additionally, the Owner must enter into an extended use period of an additional 15 years by filing a regulatory agreement on the project with the clerk of court in the parish where the property is located.
  • The LHC Compliance Division monitors the property throughout the compliance and extended use periods to ensure that the property remains safe, decent and affordable to low-income families.

 

LIHTC Program Documents