How Do Low Income Housing Tax Credits Work To Boost Your Income?

Are you looking to boost your income through strategic investments? How Low Income Housing Tax Credits Work is a valuable tool for developers, investors, and anyone interested in affordable housing. Income-partners.net is here to guide you through the intricacies of LIHTC, offering insights into partnership opportunities that can drive revenue and market share. Explore potential collaborations and new business ventures in the affordable housing sector to unlock financial success.

1. Understanding the Basics of Low-Income Housing Tax Credits (LIHTCs)

Are you curious about the financial mechanisms that support affordable housing? Low-Income Housing Tax Credits (LIHTCs) are designed to incentivize the development and rehabilitation of affordable housing units. Income-partners.net provides a comprehensive overview of how these credits work, offering insights into potential partnerships and revenue streams.

The LIHTC program, established as part of the Tax Reform Act of 1986, offers tax credits to developers who create or rehabilitate housing for low-income individuals and families. These credits can then be sold to investors, providing developers with crucial upfront capital for their projects. The Internal Revenue Service (IRS) allocates these credits to state housing agencies, which then distribute them to developers based on specific criteria and project proposals.

The primary goal of LIHTCs is to address the critical shortage of affordable housing across the United States. By providing financial incentives, the program encourages private developers to invest in projects that might not otherwise be economically viable. This ultimately increases the availability of affordable housing options for those who need them most. According to a study by the Department of Housing and Urban Development (HUD), LIHTCs have supported the development of over 3 million affordable housing units since their inception.

The LIHTC program operates through a multi-layered process involving various stakeholders:

Developers: These are the individuals or companies responsible for constructing or rehabilitating affordable housing properties.
Investors: These entities, often banks or corporations, purchase the tax credits from developers to offset their own tax liabilities.
State Housing Agencies: These agencies oversee the allocation and management of LIHTCs within their respective states, ensuring compliance with federal regulations.
The IRS: The IRS is responsible for setting the overall guidelines for the LIHTC program and allocating credits to state agencies.

Income-partners.net helps you navigate this complex landscape, offering expert guidance on identifying potential projects, securing funding, and building successful partnerships in the affordable housing sector.

2. Who Benefits From Low-Income Housing Tax Credits?

Are you wondering who exactly benefits from the LIHTC program? The Low-Income Housing Tax Credit program offers significant benefits to a wide range of stakeholders, fostering community development and providing financial opportunities. At income-partners.net, we help you understand these benefits and how you can leverage them for mutual gain.

Low-Income Tenants: The most direct beneficiaries are low-income individuals and families who gain access to safe, affordable housing.
Developers: LIHTCs provide developers with crucial funding to finance the construction or rehabilitation of affordable housing projects.
Investors: Corporations and financial institutions can reduce their tax liabilities by investing in LIHTC projects.
Communities: Affordable housing developments can revitalize neighborhoods, boost local economies, and create jobs.

Low-Income Tenants

The primary objective of the LIHTC program is to provide affordable housing options for low-income individuals and families. These tax credits enable developers to offer reduced rental rates, making housing accessible to those who might otherwise struggle to find suitable accommodations. According to the National Low Income Housing Coalition, over 10 million renter households in the U.S. have extremely low incomes and face a severe shortage of affordable housing. LIHTCs play a critical role in addressing this gap.

Developers

LIHTCs provide developers with a significant source of capital, making it financially feasible to undertake affordable housing projects. These credits can be sold to investors, generating upfront funding that can cover a substantial portion of development costs. This allows developers to build more units, expand their portfolios, and contribute to community revitalization. Income-partners.net can connect you with developers seeking partners for new projects, providing opportunities to invest and grow together.

Investors

Investing in LIHTC projects offers corporations and financial institutions a unique opportunity to reduce their tax liabilities while also supporting community development. By purchasing tax credits, investors can offset their federal income taxes, effectively lowering their overall tax burden. Additionally, these investments often qualify for Community Reinvestment Act (CRA) credit, further incentivizing financial institutions to participate. Income-partners.net helps investors identify and evaluate promising LIHTC projects, ensuring a mutually beneficial partnership.

Communities

Affordable housing developments funded by LIHTCs can have a transformative impact on local communities. These projects often revitalize neglected neighborhoods, create jobs, and stimulate economic growth. By providing safe, stable housing, LIHTCs can improve residents’ quality of life, leading to better health outcomes, educational attainment, and employment opportunities. A study by the Urban Institute found that LIHTC developments can increase property values in surrounding areas and attract new businesses, contributing to overall community prosperity.

3. Key Requirements and Regulations for LIHTC Projects

Are you concerned about the regulatory aspects of LIHTC projects? Navigating the regulations and requirements of LIHTC projects can be complex, but it’s crucial for ensuring compliance and maximizing benefits. Income-partners.net offers expert guidance on the key regulations that govern these projects, making your path smoother and more profitable.

LIHTC projects must adhere to specific requirements to qualify for and maintain tax credit eligibility:

Income Limits: Projects must serve tenants with incomes below certain percentages of the Area Median Income (AMI).
Affordability Period: Units must remain affordable for a minimum of 30 years.
Physical Standards: Properties must meet certain physical standards and be maintained in good condition.
Compliance Monitoring: State housing agencies conduct regular compliance monitoring to ensure projects adhere to regulations.

Income Limits

One of the primary requirements of the LIHTC program is that projects must serve tenants with incomes below specific thresholds relative to the Area Median Income (AMI). These income limits are set by HUD and vary depending on the location and household size. To qualify for LIHTCs, developers must ensure that a certain percentage of their units are occupied by tenants whose incomes do not exceed these limits. Common income restrictions include:

20% of units occupied by tenants with incomes at or below 50% of AMI.
40% of units occupied by tenants with incomes at or below 60% of AMI.

These income limits are critical for ensuring that LIHTC projects genuinely serve low-income populations. Income-partners.net provides up-to-date information on AMI levels and income limits, helping you target the right demographics for your projects.

Affordability Period

LIHTC regulations require that units remain affordable for a minimum of 30 years. This means that rental rates must be maintained at levels that are affordable to low-income tenants for the duration of this period. Developers must also agree to extend the affordability period beyond 30 years in some cases, depending on state and local requirements.

Maintaining affordability over the long term can present challenges, such as rising operating costs and fluctuations in market conditions. Income-partners.net offers strategies for long-term financial planning and sustainability, helping you navigate these challenges and ensure the continued success of your projects.

Physical Standards

LIHTC properties must meet certain physical standards and be maintained in good condition throughout the affordability period. These standards are designed to ensure that tenants have access to safe, decent, and sanitary housing. Regular inspections are conducted to verify compliance with these standards, and developers must address any deficiencies promptly.

Maintaining high physical standards not only benefits tenants but also enhances the overall value and appeal of the property. Income-partners.net provides resources and best practices for property management and maintenance, helping you keep your LIHTC projects in top condition.

Compliance Monitoring

State housing agencies play a crucial role in monitoring LIHTC projects for compliance with federal regulations. These agencies conduct regular site visits, review tenant files, and assess financial records to ensure that projects adhere to income limits, affordability requirements, and physical standards. Developers must cooperate fully with these monitoring efforts and address any issues identified by the agency.

Failure to comply with LIHTC regulations can result in penalties, including the recapture of tax credits. Income-partners.net offers comprehensive compliance support, helping you navigate the monitoring process and avoid costly mistakes.

4. 4% vs 9% LIHTC: What’s the Difference?

Are you trying to decide between 4% and 9% LIHTC? Understanding the differences between 4% and 9% LIHTCs is vital for making informed decisions about affordable housing projects. Income-partners.net breaks down the key distinctions to help you choose the best option for your investment goals.

The LIHTC program offers two primary types of credits:

4% Credits: These are typically used in conjunction with tax-exempt bonds and are non-competitive.
9% Credits: These are more competitive and offer a higher level of subsidy, making them suitable for projects with higher costs.

4% Credits

4% LIHTCs are generally used in conjunction with tax-exempt bonds to finance affordable housing projects. Unlike 9% credits, 4% credits are non-competitive, meaning that any project that meets the eligibility criteria can receive them. The amount of credit is calculated based on 4% of the project’s qualified basis, although the actual percentage may vary depending on prevailing interest rates.

4% credits are often used for the acquisition, rehabilitation, or new construction of affordable housing properties. Because they are typically paired with tax-exempt bonds, they can provide a cost-effective financing solution for projects with relatively lower costs. Income-partners.net can help you explore projects that leverage 4% credits, offering opportunities for stable, long-term investments.

9% Credits

9% LIHTCs are the more competitive of the two types of credits and offer a higher level of subsidy. These credits are allocated by state housing agencies through a competitive application process. Developers must demonstrate that their projects meet specific criteria outlined in the state’s Qualified Allocation Plan (QAP), which prioritizes projects based on factors such as affordability, location, and community impact.

9% credits are typically used for projects with higher costs or those located in areas with greater need for affordable housing. The amount of credit is calculated based on 9% of the project’s qualified basis, although the actual percentage may be adjusted based on market conditions. Income-partners.net provides insights into the QAPs of various states, helping you identify promising projects that are likely to receive 9% credit allocations.

Key Differences

Feature	4% Credits	9% Credits
Competitiveness	Non-competitive	Competitive
Subsidy Level	Lower	Higher
Financing	Typically used with tax-exempt bonds	Standalone or with other subsidies
Project Suitability	Lower-cost projects, rehabilitation projects	Higher-cost projects, projects in high-need areas
Allocation	Any eligible project receives credit	State housing agencies allocate based on QAP
Risk	Lower due to non-competitive nature	Higher due to competitive process, but potentially higher returns
Timeframe	Predictable timeline	Less predictable timeline due to application and approval process
Focus	Often rehabilitation of existing structures	New construction or substantial rehabilitation
Complexity	Less complex application process	More complex application process, requiring detailed project planning

Income-partners.net can help you weigh the pros and cons of each type of credit, guiding you toward the option that best aligns with your investment strategy and risk tolerance.

5. How to Find and Evaluate LIHTC Projects

Are you ready to start investing in LIHTC projects? Finding and evaluating LIHTC projects requires a strategic approach. Income-partners.net offers resources and expertise to help you identify promising opportunities and assess their potential for success.

Research: Identify projects in areas with strong demand for affordable housing.
Due Diligence: Conduct thorough due diligence to assess the financial viability and compliance of potential projects.
Partnerships: Collaborate with experienced developers and investors to leverage their expertise and resources.

Research

The first step in finding and evaluating LIHTC projects is to conduct thorough research to identify areas with strong demand for affordable housing. This involves analyzing demographic data, housing market trends, and local economic conditions. Factors to consider include:

Population growth: Areas with rapidly growing populations often experience increased demand for affordable housing.
Poverty rates: Communities with high poverty rates are more likely to have a significant need for affordable housing options.
Rental market conditions: Low vacancy rates and rising rental rates indicate a strong demand for affordable housing.
Government initiatives: State and local government policies and initiatives can create favorable conditions for LIHTC projects.

Income-partners.net provides access to a wealth of data and research tools to help you identify promising markets for affordable housing investments.

Due Diligence

Once you have identified potential projects, it’s essential to conduct thorough due diligence to assess their financial viability and compliance with LIHTC regulations. This involves reviewing project plans, financial statements, and regulatory documents. Key areas to examine include:

Financial feasibility: Assess the project’s projected revenues, expenses, and cash flows to determine its long-term financial viability.
Compliance: Verify that the project meets all applicable LIHTC requirements, including income limits, affordability periods, and physical standards.
Development team: Evaluate the experience and expertise of the development team to ensure they have the capacity to execute the project successfully.
Market analysis: Conduct a market analysis to assess the demand for affordable housing in the project’s target area and evaluate the potential for rent growth.

Income-partners.net offers due diligence support services, providing expert analysis and guidance to help you make informed investment decisions.

Partnerships

Collaborating with experienced developers and investors can significantly increase your chances of success in the LIHTC market. These partnerships can provide access to valuable expertise, resources, and networks. When seeking partners, consider factors such as:

Experience: Look for partners with a proven track record of successful LIHTC projects.
Expertise: Choose partners with complementary skills and knowledge in areas such as development, finance, and compliance.
Resources: Partner with firms that have access to capital, financing, and other resources needed to support the project.
Alignment: Ensure that your partners share your vision and goals for the project.

Income-partners.net connects you with potential partners in the affordable housing sector, fostering collaborative relationships that can drive innovation and success.

6. Common Challenges and How to Overcome Them

Are you prepared for the challenges that come with LIHTC projects? LIHTC projects can present various challenges. Income-partners.net identifies these hurdles and provides practical solutions to help you overcome them.

Financing Gaps: Securing adequate financing can be a hurdle, but strategic partnerships and creative financing solutions can help.
Regulatory Compliance: Staying compliant with complex regulations requires careful attention to detail and expert guidance.
Community Opposition: Addressing community concerns through proactive communication and engagement is crucial.

Financing Gaps

One of the most common challenges in LIHTC projects is securing adequate financing to cover all development costs. LIHTCs typically provide a significant portion of the funding, but additional sources of capital are often needed to fill the gap. Strategies for addressing financing gaps include:

Layering financing: Combining LIHTCs with other sources of funding, such as tax-exempt bonds, grants, and loans.
Seeking philanthropic support: Obtaining grants or donations from foundations and charitable organizations that support affordable housing.
Attracting private investment: Appealing to private investors who are interested in supporting community development and earning a return on their investment.
Negotiating favorable terms: Working with lenders to negotiate favorable interest rates, repayment terms, and loan covenants.

Income-partners.net can connect you with financing experts who can help you develop creative solutions to address financing gaps and ensure the successful completion of your projects.

Regulatory Compliance

LIHTC projects are subject to a complex web of federal, state, and local regulations. Staying compliant with these regulations requires careful attention to detail and expert guidance. Common compliance challenges include:

Income verification: Ensuring that tenants meet income eligibility requirements.
Rent restrictions: Maintaining rental rates at levels that are affordable to low-income tenants.
Physical standards: Adhering to building codes and physical maintenance standards.
Reporting requirements: Filing accurate and timely reports with state housing agencies and the IRS.

Income-partners.net offers comprehensive compliance support services, including training, consulting, and software solutions, to help you navigate the regulatory landscape and avoid costly penalties.

Community Opposition

LIHTC projects can sometimes face opposition from local communities who are concerned about potential impacts on property values, traffic, and neighborhood character. Addressing these concerns requires proactive communication and engagement. Strategies for overcoming community opposition include:

Engaging stakeholders: Involving community members in the planning process and soliciting their feedback.
Addressing concerns: Responding to community concerns in a transparent and timely manner.
Highlighting benefits: Emphasizing the positive impacts of the project, such as increased affordable housing options, community revitalization, and economic development.
Building partnerships: Collaborating with local organizations and community leaders to build support for the project.

Income-partners.net offers community engagement resources and strategies to help you build positive relationships with local stakeholders and gain community support for your LIHTC projects.

7. The Role of State Housing Agencies

How important are State Housing Agencies in the LIHTC process? State Housing Agencies (SHAs) play a pivotal role in the LIHTC program. Income-partners.net explains their functions and how to effectively work with them for successful project outcomes.

Allocation: SHAs allocate LIHTCs to developers based on their Qualified Allocation Plan (QAP).
Monitoring: SHAs monitor projects for compliance with LIHTC regulations.
Guidance: SHAs provide guidance and technical assistance to developers.

Allocation

State Housing Agencies (SHAs) are responsible for allocating LIHTCs to developers based on their Qualified Allocation Plan (QAP). The QAP outlines the criteria that SHAs use to evaluate and prioritize LIHTC applications. Factors considered in the QAP may include:

Project location: Prioritizing projects in areas with high needs for affordable housing.
Affordability: Giving preference to projects that offer deeper levels of affordability or serve extremely low-income tenants.
Community impact: Considering the project’s potential to revitalize neighborhoods, create jobs, and stimulate economic development.
Sustainability: Favoring projects that incorporate green building practices and energy-efficient design.

Income-partners.net provides insights into the QAPs of various states, helping you identify the priorities of SHAs and tailor your applications accordingly.

Monitoring

SHAs play a crucial role in monitoring LIHTC projects for compliance with federal regulations. They conduct regular site visits, review tenant files, and assess financial records to ensure that projects adhere to income limits, affordability requirements, and physical standards. SHAs also investigate complaints from tenants and take enforcement actions against developers who violate LIHTC regulations.

Income-partners.net offers compliance support services to help you navigate the monitoring process and maintain good standing with SHAs.

Guidance

SHAs provide guidance and technical assistance to developers throughout the LIHTC process. They offer training programs, workshops, and one-on-one consultations to help developers understand LIHTC regulations and best practices. SHAs also provide resources and tools to assist developers in preparing their LIHTC applications and managing their projects effectively.

Income-partners.net partners with SHAs to offer educational resources and networking opportunities to developers and investors in the affordable housing sector.

8. Future Trends in Low-Income Housing Tax Credits

Are you staying ahead of the curve with LIHTC trends? The LIHTC landscape is constantly evolving. Income-partners.net keeps you informed about future trends and potential changes in the program, ensuring you are well-prepared for what’s ahead.

Policy Changes: Monitor potential legislative and regulatory changes that could impact the LIHTC program.
Innovation: Explore innovative approaches to affordable housing development, such as modular construction and mixed-income communities.
Sustainability: Prioritize sustainable building practices and energy-efficient designs to reduce operating costs and environmental impact.

Policy Changes

The LIHTC program is subject to ongoing policy changes at the federal, state, and local levels. These changes can impact the availability of credits, eligibility requirements, and compliance standards. It’s essential to stay informed about potential policy changes and their potential implications for your LIHTC projects. Key areas to monitor include:

Federal legislation: Track proposed bills and amendments that could affect the LIHTC program.
State regulations: Stay up-to-date on changes to state QAPs and other regulations that govern LIHTC projects.
Local ordinances: Monitor local zoning laws and building codes that could impact affordable housing development.

Income-partners.net provides timely updates and analysis of policy changes affecting the LIHTC program, helping you anticipate and adapt to evolving market conditions.

Innovation

Innovative approaches to affordable housing development are emerging to address the challenges of cost, efficiency, and sustainability. Examples of innovation in the LIHTC sector include:

Modular construction: Using prefabricated building components to reduce construction time and costs.
Mixed-income communities: Integrating affordable housing units into market-rate developments to promote social inclusion and economic diversity.
Transit-oriented development: Locating affordable housing near public transportation to reduce reliance on cars and improve access to jobs and services.

Income-partners.net showcases innovative LIHTC projects and provides insights into how these approaches can enhance project outcomes and community impact.

Sustainability

Sustainable building practices and energy-efficient designs are becoming increasingly important in the LIHTC sector. Green building features can reduce operating costs, improve tenant health, and minimize environmental impact. Strategies for promoting sustainability in LIHTC projects include:

Energy efficiency: Incorporating energy-efficient appliances, lighting, and HVAC systems.
Water conservation: Using low-flow fixtures and drought-resistant landscaping.
Renewable energy: Installing solar panels or other renewable energy systems.
Green building certifications: Pursuing certifications such as LEED or Enterprise Green Communities.

Income-partners.net provides resources and best practices for sustainable LIHTC development, helping you create projects that are both environmentally responsible and financially viable.

9. Success Stories: Profitable Partnerships in LIHTC Projects

Can partnerships truly drive success in LIHTC projects? Real-world examples demonstrate the potential for profitable partnerships in LIHTC projects. Income-partners.net shares compelling success stories that highlight the power of collaboration.

Developer-Investor Partnerships: These collaborations combine development expertise with financial resources.
Public-Private Partnerships: Combining public sector support with private sector innovation and efficiency.
Community Partnerships: Involving local organizations and residents to ensure projects meet community needs.

Developer-Investor Partnerships

Developer-investor partnerships are a cornerstone of successful LIHTC projects. Developers bring their expertise in project planning, construction, and property management, while investors provide the crucial capital needed to finance the project. These partnerships can be structured in various ways, but typically involve the developer selling the LIHTCs to the investor in exchange for upfront funding.

Income-partners.net facilitates connections between developers and investors, helping them find partners who align with their goals and values. By combining their respective strengths, developers and investors can create high-quality affordable housing that benefits both the community and their bottom lines.

Public-Private Partnerships

Public-private partnerships (PPPs) combine the resources and expertise of both the public and private sectors to address pressing social needs, such as affordable housing. In the LIHTC context, PPPs may involve state or local governments providing land, infrastructure, or other forms of support to private developers. In exchange, the developer agrees to build and manage affordable housing units that meet specific affordability requirements.

Income-partners.net highlights successful PPPs in the LIHTC sector, showcasing how collaboration between the public and private sectors can lead to innovative and impactful solutions.

Community Partnerships

Community partnerships involve collaborating with local organizations, community leaders, and residents to ensure that LIHTC projects meet the needs of the community they serve. These partnerships can take various forms, such as:

Community advisory boards: Involving community members in the project planning and design process.
Job training programs: Providing job training and employment opportunities for local residents.
Community centers: Incorporating community centers or other amenities into the project to serve the needs of residents.

Income-partners.net emphasizes the importance of community engagement and provides resources to help developers build strong relationships with local stakeholders.

10. How Income-partners.net Can Help You Succeed With LIHTCs

Are you looking for the right support to navigate the LIHTC landscape? Income-partners.net offers a range of services and resources to help you succeed in the LIHTC market. From finding partners to staying compliant, we’ve got you covered.

Partner Matching: Connect with developers, investors, and other professionals in the LIHTC sector.
Expert Guidance: Access expert insights and advice on all aspects of LIHTC projects.
Resources and Tools: Utilize our comprehensive collection of resources and tools to streamline your LIHTC projects.

Partner Matching

One of the most valuable services offered by income-partners.net is our partner-matching program. We connect developers, investors, and other professionals in the LIHTC sector, helping them find partners who align with their goals and values. Our partner-matching program takes into account factors such as:

Project experience: Matching partners with complementary experience and expertise.
Investment goals: Connecting investors with projects that meet their financial objectives.
Geographic preferences: Linking partners who are interested in working in the same geographic areas.
Community impact: Facilitating partnerships that prioritize positive community outcomes.

By using our partner-matching program, you can save time and resources while increasing your chances of finding the right partners for your LIHTC projects.

Expert Guidance

Income-partners.net provides access to expert insights and advice on all aspects of LIHTC projects. Our team of experienced professionals can assist you with:

Project planning: Developing comprehensive project plans that meet LIHTC requirements and maximize financial returns.
Financing strategies: Identifying and securing the optimal financing solutions for your projects.
Compliance support: Navigating the complex regulatory landscape of the LIHTC program.
Community engagement: Building positive relationships with local stakeholders.

Our expert guidance can help you avoid costly mistakes and maximize the success of your LIHTC projects.

Resources and Tools

Income-partners.net offers a comprehensive collection of resources and tools to help you streamline your LIHTC projects. Our resources include:

Qualified Allocation Plan (QAP) database: Access up-to-date QAPs from states across the country.
Compliance checklists: Ensure that your projects meet all applicable LIHTC requirements.
Financial models: Analyze the financial feasibility of potential projects.
Community engagement guides: Learn best practices for building positive relationships with local stakeholders.

By utilizing our resources and tools, you can save time and resources while increasing the efficiency and effectiveness of your LIHTC projects.

Address: 1 University Station, Austin, TX 78712, United States.

Phone: +1 (512) 471-3434.

Website: income-partners.net.

Ready to unlock new income streams through Low-Income Housing Tax Credits? Visit income-partners.net today to explore partnership opportunities, gain expert insights, and access resources that will drive your success. Find your ideal partner and start building profitable, impactful relationships now.

FAQ About Low-Income Housing Tax Credits (LIHTC)

What are Low-Income Housing Tax Credits (LIHTCs)? LIHTCs are federal tax credits designed to incentivize the development and rehabilitation of affordable housing for low-income individuals and families.
Who is eligible for LIHTC housing? Eligibility is based on income, with specific limits tied to the Area Median Income (AMI). Projects typically serve tenants with incomes at or below 50% or 60% of AMI.
How do developers benefit from LIHTCs? Developers receive tax credits that can be sold to investors for upfront capital, making affordable housing projects financially viable.
What is the difference between 4% and 9% LIHTCs? 4% credits are typically used with tax-exempt bonds and are non-competitive, while 9% credits are more competitive and offer a higher level of subsidy.
How are LIHTCs allocated? The IRS allocates LIHTCs to state housing agencies, which then distribute them to developers based on their Qualified Allocation Plan (QAP).
What are the affordability requirements for LIHTC projects? Units must remain affordable for a minimum of 30 years, with rental rates maintained at levels affordable to low-income tenants.
How do state housing agencies monitor LIHTC projects? SHAs conduct regular site visits, review tenant files, and assess financial records to ensure compliance with LIHTC regulations.
What happens if a developer fails to comply with LIHTC regulations? Failure to comply can result in penalties, including the recapture of tax credits.
How can investors benefit from LIHTCs? Investors can reduce their tax liabilities by purchasing tax credits, while also supporting community development.
What are some challenges associated with LIHTC projects? Common challenges include financing gaps, regulatory compliance, and community opposition.