The LIHTC Program is a tax incentive intended to increase the availability of low-income rental housing. The tax credit is a credit against regular tax liability for investments in affordable housing properties constructed, acquired and rehabilitated after 1986.
This indirect federal subsidy is used to finance construction and rehabilitation of rental housing for low-income individuals. It was created to incentivize private developers and investors to provide more low-income housing. Without this incentive, the supply of affordable rental housing would be limited because these projects would lack sufficient profit to warrant investment.
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The LIHTC is designed to subsidize either 30% or 70% of the costs in a low-income unit rental project. The 30% subsidy, commonly called the “automatic 4% tax credit,” is for new construction that includes additional subsidies or that can be used for the acquisition cost of existing buildings. The 70% subsidy, or “9% tax credit,” supports new construction that does not include any additional federal subsidies.
Qualifying LIHTC rental properties often have lower debt service payments and lower vacancy rates than traditional market-rate rental housing. LIHTC properties also may experience a faster lease-up and enhanced returns for investors because of the credit.
To qualify for tax credits, the proposed development must involve new construction or substantial rehab of existing units occupied by low-income individuals and families. Prospective applicants apply for housing tax credits by submitting an application to the LHC. Applications are received and evaluated under the Qualified Allocation Plan (QAP) at least once a year.
The QAP provides information on the calendar year program, including minimum project requirements, competitive criteria, and underwriting criteria. The amount of credits to which a project is eligible is based on the amount of qualified development costs incurred and the percentage of low-income units within the development. Each qualified tax credit development must include a minimum percentage of units to be set aside for eligible low-income tenants. These set-aside units must also be rent restricted.
The LIHTC is received each year for ten years, the period the taxpayer claims the credit on his/her federal income tax return. The owner must maintain the income and rent restrictions continuously for 15 years; known as the “compliance period."
Additionally, the owner must enter into an extended use period of an additional 15 years by filing a regulatory agreement on the project with the clerk of court in the parish where the property is located.
The LHC Compliance Division monitors the property throughout the compliance and extended use periods to ensure that the property remains safe, decent and affordable to low-income families.
Find archived documents for this program. Browse resources.
Applications Logs
Awards Lists & Waiting Lists
Applications
FAQs
NOFAs
QAPs
LIHTC Map
2021 Final Awards & Waiting List
Environmental Review - Introduction
Louisiana MSA Parish
Inclusions for Cost Analysis
2021 Draft QAP Memo on Comments Received
Announcement of 2021 QAP Application Process and Workshop
Revised Timeline QAP 2021 Program Schedule
Resolution amending the Program Schedule of the State's 2021 QAP
2021 QAP Notice of Public Hearing Comments
2021 QAP Public Hearing Recording
2021 QAP Public Hearing Agenda
2021 QAP - Summary of Proposed Changes
Notice of Public Hearing 2021 Qualified Allocation Plan
2024 Funding Round
2024 Qualified Allocation Plan - FAQs
2024 Qualified Allocation Plan - FAQs #2
2024 QAP Application Workshop Powerpoint
2024 QAP Application Model v1.0
Neighborhood Location Characteristics Form
Louisiana Minority Supplier Development Council (LAMSDC)
Women’s Business Enterprise Council South (WBEC)
Taxpayer Carryover Certification- 2022 Credits
Carryover Questionnaire - 2022 Credits
Carryover (CPA-Counsel Cover letter) Template (2022 Credits)
Ownership Information
Zoning Certification
Sample PHA Referral Agreement
Environmental Restrictions Checklist
Syndication Information Certification
Financing Certification
Sample Developer Services Agreement
Estimate and Certificate of Actual Cost
Certification Regarding Debarment
Matching Certification
Taxpayer Applicant Certification
Counsel's Opinion of Non-Profit