What kind of properties typically qualify for the LIHTC specifically in the multifamily realm?

Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

The Low-Income Housing Tax Credit (LIHTC) program is a game-changer

11 Jun 2025 · 1 min

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In this brief segment of a YouTube interview, Speaker A asks which multifamily properties qualify for the Low‑Income Housing Tax Credit (LIHTC). Speaker B explains that LIHTC projects fall into two main program types—the 9% credit and the 4% credit. The 9% credit typically funds about 70% of development costs, while the 4% credit, combined with low‑income housing bonds, finances roughly 80% (or more) of total costs, with bonds covering at least 50% and the 4% credit covering about 30%. This explanation highlights the financing structure that makes LIHTC projects viable for developers of qualifying multifamily housing.

Questions this video answers

LIHTC projects fall into two program types: the 9% credit, which funds about 70% of development costs, and the 4% credit, which, together with low‑income housing bonds that finance at least 50% of costs, covers roughly 80% (or more) of total development costs. The 4% credit itself funds about 30% of costs.

So can you tell us what kind of properties typically qualify for the LIHTC specifically in the multifamily realm?
Well, there's a, you know, when people talk about LIHTC, there's 2 types of programs. There's what we call the 9% program and the 4% program. Those tax credits fund about 70% of the development cost. The 4% program And the bonds finance a minimum of 50% of the development costs, and then the 4% tax credits fund about 30% of the development costs. So between the bonds and the tax credits, it covers about 80%, sometimes more, of the total development costs.