What is a Low Income Housing Tax Credit Apartment Property?
by David Layfield on October 11, 2013
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As a renter searching for affordable rental housing, you may come across apartment communities that are called Low Income Housing Tax Credit or “LIHTC” properties. The Low Income Housing Tax Credit (LIHTC) Program is a Federal housing program that provides tax incentives to developers, owners and investors of apartment properties who rent to low income persons. These tax incentives reduce the cost of development and construction of apartment communities, thereby reducing the rents that are charged to apartment residents.
Income qualifications vary widely, but at a maximum, to qualify for residency in a LIHTC
apartment community, an apartment renter’s income cannot exceed 60% of the Area Median Income. In many cases, apartments are reserved for some individuals and families that have incomes as low as 30% of the Area Median Income. You should inquire at the apartment property itself as policies vary from one apartment community to the next.
Over the last 10 years, tax credit apartment properties have become prevalent in almost every rental market in America. In most cases, the design and construction is of high quality and may look like any other conventional apartment property. For the most part, Low Income Housing Tax Credit apartments are a great place to live.
To find one of these properties, search at ApartmentSmart.com .