The LIHTC program provides federal and state tax credits to investors in affordable housing through an annual competitive application process. The credit can be used each year for 10 years and is allocated to developers, who may then sell it to raise equity to construct or acquire and rehabilitate affordable rental housing.
The Qualified Allocation Plan (QAP) sets forth the selection criteria, federal preferences and MHDC priorities for application selection. This plan is revised annually. Administration of the Low-Income Housing Tax Credit has been delegated to state housing agencies to assure that quality housing would be available where it is most needed.
