The LIHTC Program 

The most efficient financing tool available to develop affordable rental housing is the Low Income Housing Tax Credit (LIHTC). This tax credit program, created as part of the Tax Reform Act of 1986, is currently the federal government’s largest and most successful program for engaging the private sector in the construction and rehabilitation of affordable rental housing. According to the National Council of State Housing Agencies, approximately 90 percent of all affordable housing is financed annually through the LIHTC.

Since 1987, the LIHTC program has:

  • Financed more than 3 million affordable apartments
  • Supported nearly 96,000 jobs annually (National Association of Home Builders)
  • Benefited local economies from the addition of $3.5 billion in taxes and other revenues

Additionally, according to a report issued by NAHB, the estimated one-year local impact of building 100 multifamily units in a typical tax credit development include:

  • $10.8 million in additional wages for local workers and profits for proprietors of businesses
  • $4.2 million in additional taxes for federal, state and local governments
  • 113 additional jobs, about half of which are in the construction sector

For more information on the LIHTC, please visit

Community Reinvestment Act

Banking regulators recognize that the program provides institutions with another avenue to meet their Community Reinvestment Act (CRA) requirements.

Click on the following links for information on the Community Reinvestment Act requirements: