Financing the Enclave: The Affordable Housing Tax Credit
The LIHTC program provides incentives to private developers for affordable housing construction. |
The Enclave at Hilliard Run is receiving significant financial investment through the Low-Income Housing Tax Credit Program (LIHTC). The LIHTC Program provides incentives for private investors to develop housing affordable to lower-income families. Formed in 1986 under the Reagan administration, the program has been highly successful in developing high-quality housing throughout the United States. The Tax Credit program marks a shift from government-managed public housing to private sector housing development.
The Tax Credit program involves a competitive review process that prioritizes quality projects and experienced development teams. Once credits are awarded, development teams use the tax credit to leverage equity investment in new construction and rehabilitation housing projects. This equity is combined with other traditional financing sources to construct single-family and multi-family homes of comparable quality to market-rate units. |
