What is the primary purpose of the Low-Income Housing Tax Credit (LIHTC) program?
The LIHTC program incentivizes developers to build or rehabilitate affordable rental housing.
Who allocates LIHTC credits at the state level?
State Housing Finance Agencies are responsible for distributing LIHTC credits based on state-specific priorities.
What is the affordability period typically required for LIHTC properties?
LIHTC properties must generally remain affordable for at least 15 years, though extended use periods are common.
Which income group is the LIHTC program primarily designed to assist?
The LIHTC program targets individuals and families earning 60% or less of the area median income (AMI).
What role does a Tax Credit Specialist play in the LIHTC program?
Tax Credit Specialists ensure compliance with program regulations and maintain income eligibility documentation.
What documentation is essential for tenant eligibility in affordable housing?
Proof of income, household size, and other financial documents are necessary to determine eligibility.
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Why is ongoing compliance monitoring critical in LIHTC properties?
Monitoring ensures continued eligibility of tenants and preservation of tax benefits for investors.
What is one common reason a household may be disqualified from LIHTC housing?
Earning above the income threshold disqualifies applicants from LIHTC housing.
Which agency oversees the LIHTC program at the federal level?
The IRS is responsible for overseeing the LIHTC program and ensuring compliance with federal tax regulations.