The Low Income Housing Tax Credit (LIHTC) program is currently the country’s most extensive affordable housing program. The program was added to Section 42 of the Internal Revenue Code in 1986 in order to provide private owners with an incentive to create and maintain affordable housing. Since its creation in 1986, the LIHTC program has helped to finance more than 2.4 million affordable rental-housing units for low-income households. The LIHTC program works through a subsidy mechanism. The Internal Revenue Service (IRS) allocates funds on a per capita basis to each state. Each state has a housing finance or other agency (HFA) that assumes responsibility for allocating tax credits to developers. The process by which the HFA allocates the credits is competitive and uses criteria enumerated in the state’s Qualified Allocation Plan. The HFA for Texas is the Texas Department of Housing and Community Affairs. The LIHTCs are sold, or syndicated, to investors thereby providing equity for the development, redevelopment, or rehabilitation of multifamily developments.
Using our creativity to maneuver through structured programs, we create hybrids by taking what is already established and forming something new. Unique formulations of funding streams that are specially combined for our individual needs of our clients.