Definition
The Low Income Housing Tax Credit (LIHTC) was designed by Congress to assist in the creation and preservation of affordable rental housing for low-income households. It is currently the most used funding source for developers creating housing for low-income households. It provides a reduction in federal tax liability over a 10-year period for owners of qualifying rental housing who agree to conform to certain operating restrictions for at least 15 years. This program is not administered by HUD, but instead is run through the Internal Revenue Service. The Vermont Housing Finance Agency (VHFA) is the state administering agency for this housing program for Vermont.
