Housing Development Program Details


Program Summary

The federal Low Income Housing Tax Credit (LIHTC) provides subsidy in the form of a federal tax credit to developers of affordable rental housing. Developers using funding must reserve a portion of the rental units for lower income renters.

MaineHousing allocates the LIHTC to developers who sell (syndicate) the tax credit to corporate investors. The money this raises is used as equity in the rental housing project. The LIHTC can be linked with other financing through MaineHousing’s Rental Loan Program (RLP).

MaineHousing’s allocation of the LIHTC is a competitive process scored through the Qualified Allocation Plan (QAP).

The tax credits provide approximately $20 million annually in subsidy.



Eligibility

Developers of qualified low-income housing, as defined by the Internal Revenue Code (Section 42) may apply for LIHTC:

In allocating the tax credit, MaineHousing considers the following priorities:
  • Projects for larger families that offer the lowest total monthly housing costs and are rent-restricted to the lowest income households.
  • Projects involving acquisition and/or rehabilitation that significantly rehabilitate existing rental housing stock and offer units that are rent-restricted to the lowest income households.
  • Projects where the tax credit is needed for project feasibility.
  • Projects that meet the housing and service needs of a distinct population of a community, including housing for persons who are homeless.
  • Projects that provide housing for persons with very low income.
  • Projects located in rural areas of the State.


More Info

For more information on program eligibility, priorities, and how to apply, download and review the Qualified Allocation Plan located on the right hand menu. For related information, download the Rental Loan Program Guide and Application.


Bill Glover, Manager of Lending

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