The Low Income Housing Tax Credit Program
The Low Income Housing Tax Credit Program is an affordable housing program for individuals and families on fixed or lower incomes. The Program was created by Congress in 1986 as part of the Tax Reform Act and is administered by the Internal Revenue Service.
Benefits to You
The benefit to Residents in such housing is either a newly constructed or a substantially rehabilitated apartment with rents lower than area market rents. The rents for Tax Credit units must be considered affordable for households with incomes equaling or less than 60% of area median income as published annually by the Department of Housing and Urban Development (HUD). This often results in rents substantially lower than for other comparable apartments. Minimum and Maximum income limits apply for bedroom or household size.
Difference from Other Housing Programs
This program is not a subsidized housing program. Each Resident is responsible for the full amount of rent each month. The rental amount is NOT based on your individual household income, rather the pre-set income limits in the area. It is also important to note, that some apartment homes in the building may not be part of this program. The rent for these apartments will often be higher.
Determining Your Eligibility
To find out if you are eligible for the Low Income Housing Tax Credit Program, management must determine if you:
- Are Income Eligible
- Meet the Other Program Requirements
- Meet their Resident Selection Criteria
If it is determined that you meet all Program Requirements and management's Resident Selection Criteria, you will be qualified for the Low Income Housing Tax Credit apartment.
Income Eligibility
To be income eligible, your Total Household Income including income from your assets, must be less than or equal to the pre-set income limit for the area.
For management to make this determination, they will need to conduct the following:
- An interview with you and the other adult members of your household to determine all income and asset sources.
- Verify all income and assets through the appropriate source. It will be your responsibility to assist management with this step and to provide all the necessary information to expedite this process. (Give names and address of all sources, ect.)
- Calculate your Total Household Income using the information provided by your income and asset sources.
- If your Total Household Income is less than or equal to the pre-set area income limit, your household in INCOME ELIGIBLE.
Program Requirements
The Other requirements are often specific to the apartment complex and even the apartment you are applying to move into. Some apartment complexes or individual apartments may be designated for certain population groups such as older adults, individuals with disabilities or persons determined to be homeless.
Discuss these other requirements with the management staff.
Currently we own and manage 4 tax credit properties.
For more information on all the apartment complexes we owned and operate, follow this link [Property Page].
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