Hacienda Community Development Corporation

Provides listings of affordable housing. http://haciendacdc.org/affordable-housing/rental-properties

Most of Hacienda's housing is made affordable by the investment of private equity partners in an indirect federal program known as the Low Income Housing Tax Credit Program (LIHTC). About 70% of the cost of a new project is funded with this program. The remaining funds are made up of about eight additional sources including HOME, Section 108, low-income weatherization, OHCS trust fund, and small private grants.

The LIHTC Program, which is based on Section 42 of the Internal Revenue Code, was enacted by Congress in 1986 to provide the private market with an incentive to invest in affordable rental housing. Federal housing tax credits are awarded to developers of qualified projects. Developers then sell these credits to investors to raise capital (or equity) for their projects, which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents.

Provided the property maintains compliance with the program requirements, investors receive a dollar-for-dollar credit against their Federal tax liability each year over a period of 10 years. The amount of the annual credit is based on the amount invested in the affordable housing.