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 the QAP 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.
Low Income Housing Tax Credit Compliance Manual (Click here)