Low-Income Housing Tax Credit (LIHTC)

LIHTC is a dollar-for-dollar tax credit system designed to stimulate private investment in affordable housing development, primarily targeting low-income individuals. Established under the Tax Reform Act of 1986, this program encourages using private equity to create housing options for those with limited financial resources. LIHTC housing’s affordability is linked to the Area Median Income (AMI), setting a maximum rent that can be charged.

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