The aim of the LIHTC is to provide incentives for the development of housing for low-income individuals in every state. This is achieved by granting tax credits to developers, which they can sell to investors.
The LIHTC program requires the joint efforts of the Internal Revenue Service (IRS), the Department of Housing and Urban Development (HUD), and agencies from each state. The LIHTC database, created by HUD and available to the public since 1997, indicates that 46,554 projects and 3.05 million housing units have been placed in service between 1987 and 2016 using the LIHTC program.
Like tax credits for historic rehabilitation, toxic land clean-up and the creation of renewable energy, the program is an example of how developers and investors can contribute to the betterment of all while being allowed to profit for their efforts.
The Cherrytree Group assists both developers and investors in identifying and managing Low-Income Housing Tax Credit initiatives. We are able to “pair together” developer and investor for a partnership which helps both meet their most optimistic goals. To learn more, give us a call where we will discuss the possibilities — without any obligation.