Low Income Housing Tax Credits. Federal program with incentive for developers to build low-income housing (often in partnership with not-for-profit entities).

Low Income Housing Tax Credit. The LIHTC is a reduction in the dollar amount of federal taxes owed by an individual or corporation, in exchange for their investment in low-income rental housing. The investor provides funds for the development of the housing, and in return obtains a dollar-for-dollar reduction in tax liability. The amount of credits available each year is limited, and credits are allocated by state agencies.

Low Income Housing Tax Credits. As the largest investor in LIHTC, Fannie Mae increases the availability of funds for affordable multifamily housing by making equity investments in qualified properties. Legislated into existence in the 1986 Tax Reform Act, low income housing tax credits serve as incentives for corporations to invest in low-income rental housing. Fannie Mae serves previously underserved markets characterized by very low incomes, HOPE VI public housing replacements, and persons with special needs. More on LIHTC