What is the goal of the Low-Income Housing Tax Credit program?

The goal of the Low-Income Housing Tax Credit program is to encourage private investment in affordable rental housing. This program provides tax credits to private developers who invest in the construction or rehabilitation of rental housing for low-income households. By incentivizing private entities to create and manage affordable housing options, the program aims to increase the availability of such housing in a market that often lacks sufficient affordable units. This approach helps to ensure a steady supply of rental options that are financially accessible to low-income individuals and families, thereby addressing housing shortages and enhancing community stability.

The other options do not align with the program's objectives; for instance, providing free housing for all individuals is not a feasible solution within the framework of market-driven housing development. Eliminating rental housing entirely contradicts the purpose of the program, which is to maintain and improve access to rental options. Similarly, focusing on building luxury condos lies outside the program's mission, as it aims to serve those with lower incomes rather than the luxury housing market.