What does the acronym LIHTC stand for?

The acronym LIHTC stands for Low-Income Housing Tax Credit. This program was created in the Tax Reform Act of 1986 to encourage the development and rehabilitation of affordable rental housing for low-income households. The tax credit provides financial incentives to private investors and developers, allowing them to reduce their federal income tax liability in exchange for investing in low-income housing development.

This initiative is crucial for addressing the affordable housing shortage, as it leverages private capital to create homes for families who need them most. By providing a tax credit, the government seeks to stimulate investment in affordable housing, making it more viable for developers and ultimately increasing the availability of low-income housing options.

The other options do not accurately reflect the purpose or structure of the LIHTC program, as they reference incorrect titles or mix up the key components of housing finance and tax policy.