Federal Low Income Housing Tax Credit 4% (LIHTC 4%)

The LIHTC program provides incentives for developers to acquire, rehabilitate and/or build new low- or mixed-income housing through the allocation of federal tax credits that may be sold to corporations or investor groups to raise equity for a project. Allocated in conjunction with the issuance of Tax Exempt Bonds (TEBs), the resulting 4 percent credits and equity are used for the acquisition, rehabilitation, or new construction of affordable units. Applications may be submitted to CHFA at any time during the year or through the Developer Engagement Process, announced twice annually.


Federal Low Income Housing Tax Credit 9% (LIHTC 9%)

The LIHTC program provides incentives for developers to acquire, rehabilitate and/or build new low- or mixed-income housing through the allocation of federal tax credits that may be sold to corporations or investor groups to raise equity for a project. The LIHTCs allow for the acquisition, new construction and rehabilitation activities. The 9% LIHTCs are subject to the state’s tax credit ceiling allotment and, as such, are allocated by CHFA through highly competitive annual funding rounds. CHFA holds at least one 9% funding round per year.