TUCSON, Ariz. (KGUN) — The Arizona Department of Housing is set to host a public hearing on the State Low-Income Housing Tax Credit on Thursday, July 29th.
The virtual forum will be held to discuss the Arizona Department of Housing (ADOH) administration and implementation of the LIHTC, a new and essential tool in addressing the nation’s current affordable housing crisis.
The State LIHTC can be leveraged with the 4% Federal LIHTC to finance affordable housing, says ADOH. Pairing the State LIHTC with the 4% Federal LIHTC makes both programs more efficient and impactful. In this type of transaction the credits cover 45-to-50 percent of project costs.
As part of the Tax Reform Act of 1986, the United States Congress created the Low-Income Housing Tax Credit (LIHTC) (IRC Section 42) Program to promote the development of affordable rental housing for low-income individuals and families. LIHTC, rather than a direct subsidy, encourages investment of private capital in the development of rental housing by providing a credit to offset an investor's federal income tax liability.
For more information about the virtual event, click here.