The historic Douglass High School, located in the vibrant Dewey City community of Thomasville, Georgia, is poised for an exciting transformation. The historic campus will be renovated and converted into 52 Affordable Senior Living Apartments. The project has been awarded $18M in Low-Income Housing Tax Credits (LIHTC), which will be one of the primary sources of funding for this project. So, what are Low-Income Housing Tax Credits?
The Low-Income Housing Tax Credit (LIHTC) program, established in 1986, is a U.S. government initiative to increase the building of affordable housing. Here’s how it works:
Tax Credits for Developers: The government gives tax breaks (credits) to developers if they build housing that’s affordable for low-income families.
Investors Fund Projects: Developers sell these tax credits to investors, who provide money to fund the project. This helps lower the overall costs of building the housing.
Affordable Rent: In return for the tax credits, developers must keep the rent affordable for lower-income renters for a set period (usually 15 to 30 years).
It’s a win-win! Developers get financial help, investors get tax benefits, and communities get more affordable housing options.
If you want to take a deeper dive into how LIHTC works, click on the link below and watch
this 3 minute video.
Comentários