Asset Management >
> Low Income Housing Tax
Credit (LIHTC) Compliance
This program provides federal and state tax credits to investors in
affordable housing through an annual competitive application process. Once
approved, the credit can be used each year for 10 years and is allocated to
developers, who may then sell it to raise equity to construct or acquire and
rehabilitate affordable rental housing.
The Qualified Allocation Plan (QAP) sets forth the selection criteria,
federal preferences and MHDC priorities for application selection. This Plan
is revised annually. A copy of
is available on the MHDC website.
Congress has delegated the administration of the Low Income Housing Tax
Credit to state housing agencies to assure that good quality housing would
be available where it is most needed. MHDC is charged not only with the
allocation of credit, but also with assuring compliance with the
regulations. This includes the performance of a physical inspection of the
property and a review of management and occupancy procedures during the
compliance period and the extended use period.