Low Income Housing Tax Credit (LIHTC)

The LIHTC program effectively uses tax policy to help develop affordable rental housing for low and very low-income families. Originally part of the Tax Reform Act of 1986, the LIHTC program leverages private capital and investor equity to support the development of new and rehabilitated affordable rental housing. The credits are competitively priced. In Virginia, the Virginia Housing Development Authority (VHDA) administers the program and develops a Qualified Allocation Plan (QAP) to meet the Commonwealth’s housing needs under broad federal guidelines. The LIHTC program is the nation’s largest source of equity for the preservation and production of affordable rental housing.