ABOUT LIHTCs

The Low Income Housing Tax Credit (LIHTC) program was enacted by Congress in 1986 though Section 42 of the IRS code.  The program began in 1986 to provide the private market an incentive to invest in the affordable housing program.  Through a competitive application process, developers are awarded tax credits through their respective state allocating agencies.  The developers are able to sell the tax credits to build capital to construct the apartment developments.

HUD.gov offers additional details on the basics of the program.