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Housing Tax Credits

The federal Low-Income Housing Tax Credit (LIHTC or Housing Tax Credit) program is sponsored by the U.S. Treasury Department. We are proud to administer this program for Virginia, which encourages the development of affordable rental housing by providing owners a federal income tax credit. It also provides incentive for private investors to participate in the construction and rehabilitation of housing for low-income families.

Housing Tax Credit Process

  • How Does It Work?

    Housing tax credits are a way of encouraging developers to create affordable housing. In return for setting aside a percentage of units in your rental development for low-income tenants, you receive tax credits which help offset the cost of construction. 

    The process of how we distribute the tax credits is outlined in our Qualified Allocation Plan (QAP).

  • Housing Tax Credit Programs

    We administer both 4% and 9% Housing Tax Credits. The type of development financing you propose will determine the type of credit you apply for.

  • What Are The Requirements?

    To be eligible for the program, a housing development must meet any of the following federal requirements:

    • 20% or more of the units are both rent-restricted and occupied by tenants whose incomes are 50% or less of the Area Median Income (AMI); or
    • 40% or more of the units are both rent-restricted and occupied by tenants whose incomes are 60% or less of AMI; or
    • 40% or more of the residential units in the project are both rent-restricted and occupied by individuals whose income does not exceed the imputed income limitation designated by the taxpayer for the respective unit. The average of the imputed income limitations designated must not be more than 60% of the area median gross income. The designated imputed income limitation of a unit can only be 20%, 30%, 40%, 50%, 60%, 70%, or 80% of the area median gross income.

  • Housing Tax Credit Application Process

    Learn how the application process works for both the 4% and 9% Housing Tax Credits and how to apply for each.

  • Prior Years' Housing Tax Credit Application Data

    We provide access to all competitive and non-competitive Housing Tax Credit reservation applications and market studies for your review.

  • Resources And Reference Materials

    This page contains additional information about the Housing Tax Credit program, such as videos, forms, guidelines, requirements and more.

Tax Credit Allocation Announcements


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