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Housing Credit Program FAQs

Published on March 12, 2021

The Low Income Housing Tax Credit (Housing Credit) is a federal tax credit created by the Tax Reform Act of 1986 and designed to encourage private-sector investment in the new construction, acquisition, and rehabilitation of rental housing affordable to low-income households. Over the last three decades, the Housing Credit has become the most successful affordable rental housing production program in history.

The NCSHA Housing Credit FAQs (last updated March 2021) covers the following:

  • What is the Housing Credit?
  • Whom does the Housing Credit serve?
  • Why is the Housing Credit necessary?
  • How much housing has been developed because of the Housing Credit?
  • What does the Housing Credit cost?
  • Who administers the Housing Credit?
  • Who oversees the Housing Credit’s administration?
  • What is the Housing Credit’s economic impact?
  • Does the Housing Credit leverage other funding?
  • Would the private sector finance affordable housing without an incentive like the Housing Credit?
  • Doesn’t the Housing Credit just enable corporate investors to reduce their tax liability?
  • How well do Housing Credit properties perform?
  • In addition to affordable housing, what other benefits does the program provide?
  • How did tax reform impact the Housing Credit?
  • How can Congress strengthen the Housing Credit program?