Low Income Housing Tax Credits
The Low Income Housing Tax Credit program, also known as LIHTC ( pronounced “lie-tech”), is the largest and most successful tool in the nation to preserve and build affordable housing. Since its inception in 1986, LIHTC has financed 3 million affordable apartments and provided homes to approximately 7 million low income households.1
In addition to creating more much-needed affordable housing, the National Association of Home Builders estimates that LIHTC has generated $323 billion in local income and 3.4 million jobs over the last 30 years. Thus, the development of affordable housing is a critical component of our nation’s economic growth.
As our region faces a vast and growing affordability crisis, LIHTC is one of our most powerful tools we can use to address it and ensure that our communities remain diverse and inclusive for all.
LIHTC in Our Community
The Virginia Housing Development Authority (VHDA) administers the state of Virginia’s annual tax credit pool. Every year, VHDA manages a competitive process where developers like APAH can apply for a portion of the state tax credits. VHDA then allocates the credits to the affordable housing developments that are most innovative and responsive to local housing needs. For example, in 2017, APAH applied for and won over $31 million in tax credit equity to finance the development of Gilliam Place. APAH has won credits every year we have applied.