LIHTC (Low-Income Housing Tax Credit) Definition
The LIHTC (Low-Income Housing Tax Credit) is a federal tax incentive designed to increase availability of low-income housing. As long as the property follows LIHTC requirements, LIHTC is available. However, LIHTC credits can only be claimed for ten years after construction is completed and a property is leased up. In general, the LIHTC program only available to HUD 221(d)(4) and HUD 223(f) properties. In general, if those properties are refinanced with a HUD 223(a)(7) loan, the HUD 223(a)(7) loan will not adversely affect the LIHTC.