4% LIHTC

4% LIHTC

4% Low Income Housing Tax Credit Program (LIHTC)

A companion financing tool for MMRB Program financings funded through the sale of tax exempt private activity bonds is the 4% LIHTC Program. Similar to the private activity bond selection, to realize the benefits of this federal program, developers/sponsors are required to set aside at least 20% of their units for individuals or families earning at or below 50% of the area median income (AMI); or at least 40% of their units for individuals or families earning at or below 60% of AMI adjusted for family size. LIHTCs can be syndicated to generate part of the required equity a borrower must contribute to the financing, or can be utilized to offset the borrower's tax payments. More information can be found at the following links:

Multifamily Application and Allocation Plan

LIHTC Resources: