What Is the Low Income Housing Tax Credit (LIHTC) Program?
The Low-Income Housing Tax Credit (LIHTC) program helps create affordable apartment communities with lower than market rate rents by offering tax incentives to the property owners.
It does not offer tax credits to the tenant renting the unit.
LIHTC properties may contain market rate units that are not financially assisted, in addition to reduced rent LIHTC units under a tiered rent structure.
A tiered rent structure means that the same unit may have different rent amounts for tenants with different incomes.
Private management companies and individual owners manage these low-income housing apartment communities. LIHTC units may also have a rental subsidy program attached to them, such as the Project-Based Section 8 program.