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Overview of the Low-Income Housing Tax Credit Program and the Town's Role in Supporting LIHTC Projects.
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Staff:
Department:
Sarah O. Vi?as, Director
Affordable Housing and Community Connections
Emily Holt, Affordable Housing Development Officer
Overview: The Low-Income Housing Tax Credit (LIHTC) program is the largest source of funding for the creation and preservation of affordable housing in the United States. LIHTC is a cornerstone of the Town's Affordable Housing Strategy and aligns with our Complete Community Framework by supporting the development of affordable rental projects that serve a range of affordability levels in amenity-rich, transit-oriented locations. This discussion item will provide an overview of the program and the role of the Town in supporting successful LIHTC projects.
Recommendation(s):
That the Council receive information about the Low-Income Housing Tax Credit Program and the role of the Town in supporting successful LIHTC projects.
Overview of the LIHTC Program
* LIHTC is currently the primary tool available in the United States to develop affordable rental housing.
* Since the LIHTC program was enacted in the late 1980s, it has supported the construction or rehabilitation of over 2 million housing units for low- and moderate-income households, including more than 2,500 projects across 97 of North Carolina's 100 counties.
* The federal government allocates about $9 billion annually to state housing agencies who then award the credits to private developers of affordable rental housing projects through a competitive process.
* Developers generally sell the credits to private investors to obtain funding and once the housing project is in service, investors can claim the tax credit over a 10-year period.
* The LIHTC program is very competitive with specific timelines and scoring rules.
* Key elements of LIHTC scoring are aligned with the Council's Complete Community framework1, including affordability, transit ac...
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