Housing Credit Program FAQs
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. Since its creation, the Housing Credit has become the most successful affordable rental housing production program in history.
The NCSHA Housing Credit FAQs document 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 Creditās administration?
- What is the Housing Creditās economic impact?
- Does the Housing Credit leverage other funding?
- Would the private sector finance affordable housing without an incentive like the Housing Credit?
- Doesnāt 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 can Congress strengthen the Housing Credit program?
