What type of housing assistance does the Low-Income Housing Tax Credit program provide?

The Low-Income Housing Tax Credit (LIHTC) program provides tax incentives to developers to encourage the creation and rehabilitation of low-income housing. This program is designed to stimulate private sector investment in affordable housing projects, making it financially viable for developers to build properties that will be rented at below-market rates to low-income individuals and families.

Developers who participate in the LIHTC program receive tax credits that can significantly reduce their federal tax liability, which ultimately helps them offset the costs associated with constructing or rehabilitating affordable housing units. This approach not only expands the availability of affordable housing but also encourages investment in communities, leading to broader economic benefits.

Direct cash assistance to families, grants for maintenance of existing homes, and loans to purchase low-income properties represent different forms of housing assistance that do not align with the purpose and structure of the LIHTC program, which focuses specifically on incentivizing development through tax benefits.