Low Income Housing Tax Credit (LIHTC) Program
Low Income Housing Tax Credits (LIHTCs) play a key role in the development and preservation of affordable rental housing for low-income households. Tax credits provide a source of equity financing that multifamily developers can use to create affordable rental housing. The state of Texas' housing tax credit program is administered by the Texas Department of Housing and Community Affairs.
Types of Affordable Housing Tax Credits
There are two types of housing tax credits: competitive (9%) and non-competitive (4%). Competitive tax credits are awarded through a highly competitive yearly application process. Click here for more information about competitive 9% tax credits.
Non-competitive (4%) housing tax credits can be awarded to qualified projects that also utilize multifamily private activity bond financing. To be eligible for tax credits, the bonds must finance at least 50% of the cost of the land and buildings of the development. Developers can select from a variety bond issuers, including TSAHC. For more information about non-competitive 4% tax credits and to view a list of eligible bond issuers, click here.