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Low-Income Housing Tax Credits: Meeting the Demand for Affordable Rental Housing

by Brad Gudzinas, July 29, 2016

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The Low-Income Housing Tax Credit (LIHTC) is the federal government’s primary vehicle for producing affordable rental housing. It provides $8 billion in annual budget authority to state and local housing agencies to help produce new and rehabilitated rental housing for low-income households. The LIHTC has generated over 3 million housing units since its inception.

As the population ages and some LIHTC properties approach the end of their 30-year affordability requirement, the program must consider ways to address the increasing need for affordable rental housing.

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