Hacienda Community Development Corporation

About This Building

Affordable Housing Listings: An Overview 1. The Role of Private Equity Partners in Affordable Housing At Hacienda, the majority of our housing options are made affordable through the support of private equity partners. These partners participate in the Low Income Housing Tax Credit Program (LIHTC), an indirect federal initiative. 2. Funding for Affordable Housing Projects Approximately 70% of the total funding for new housing projects comes from the LIHTC Program. The remaining funds are sourced from various other channels, including HOME, Section 108, low-income weatherization, OHCS trust fund, and small private grants. 3. The Low Income Housing Tax Credit Program Enacted by Congress in 1986, the LIHTC Program, based on Section 42 of the Internal Revenue Code, serves as an incentive for private market investors to contribute to affordable rental housing. Developers of qualified projects are awarded federal housing tax credits, which they then sell to investors, raising capital and reducing debt for their projects. 4. Benefits for Affordable Housing Renters By leveraging the LIHTC Program, developers can offer lower, more affordable rents to tenants. The reduction in debt allows for competitive rental rates, making housing accessible for low-income individuals and families. 5. Investor Benefits under the LIHTC Program As long as the property complies with program requirements, investors receive a dollar-for-dollar credit against their Federal tax liability each year for a period of 10 years. The annual credit amount corresponds to the investment made in the affordable housing project. By understanding the role of private equity partners and the benefits of the LIHTC Program, Hacienda is able to provide listings of affordable housing options for those in need. To explore the available properties, please visit our website: http://haciendacdc.org/affordable-housing/rental-properties.