Housing Tax Credit Program

The Low-Income Housing Tax Credit (LIHTC) program is an indirect federal incentive administered by the Ohio Housing Finance Agency (OHFA) to finance the construction and rehabilitation of affordable rental housing. The 4% LIHTC is non-competitive and gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing investment equity. This equity helps developments maintain financial viability while restricting rents to affordable levels for at least 30 years. The 4% credit typically finances approximately 30-40% of a development's total cost.