What Is the Low Income Housing Tax Credit?

The video discusses the Low Income Housing Tax Credit (LIHTC), a significant federal program aimed at increasing affordable housing. It explains the mechanics of the tax credit, including its two types, and how it incentivizes developers to build affordable housing. The video also highlights challenges such as market dependency and legislative impacts, like the Tax Cuts and Jobs Act. Recent legislative efforts to improve the program are also covered, emphasizing bipartisan support for increasing the tax credit allocation.

What is the primary focus of the Low Income Housing Tax Credit (LIHTC)?

• To support mixed-income housing projects

• To reduce the federal government's tax revenue

• To increase the number of affordable rental homes

• To provide tax benefits to luxury housing developers

How does the 9% tax credit under the LIHTC program primarily differ from the 4% credit?

• It covers a larger percentage of project costs

• It applies to renovation projects only

• It is available only in urban areas

• It is less competitive and easier to obtain

What is a significant requirement for housing built under the LIHTC program?

• It must include luxury amenities

• It must be located in rural areas

• It must remain affordable for at least 30 years

• It must be sold within 10 years

What was one impact of the corporate tax rate cut on the LIHTC program?

• It increased the value of tax credits

• It reduced the incentive to invest in tax credits

• It had no effect on the program

• It led to more affordable housing units being built

What legislative effort aimed to improve the LIHTC program by increasing the tax credit allocation?

• The Urban Development Act

• The Tax Cuts and Jobs Act

• The Affordable Housing Credit Improvement Act of 2017

• The Housing Affordability Act