Housing Advisory Group
About the Low Income Housing Tax Credit (LIHTC)
The most efficient financing tool available to develop affordable rental housing is the Low Income Housing Tax Credit (LIHTC) program. Created as part of the Tax Reform Act of 1986, this program is currently the federal government's largest and most successful program for helping the private sector to build affordable rental housing. Approximately 90 percent of all affordable housing is financed annually through the LIHTC (National Council of State Housing Agencies).
Since 1987, the LIHTC program has:
- Financed more than two million apartment homes (approximately 120,000 homes annually in recent years)
- Supported 180,000 jobs annually (National Association of Home Builders (NAHB))
- Benefitted local economies from the addition of $1.5 billion in taxes and other revenues
Additionally, according to a report issued by NAHB, the estimated one-year local impacts of building 100 multifamily units in a typical tax credit project include:
- $7.3 million in local income
- $783,000 in taxes and other revenue for local governments
- 151 local jobs
The Housing Advisory Group (HAG) is a very select group of housing interests dedicated to protecting and improving affordable housing programs. To learn more about joining HAG, please click here.