Low Income Housing Tax Credits (LIHTC)
Description
The LIHTC program provides tax credits to attract private investment for construction or rehabilitation of affordable housing. The IRS awards tax credits to states, which then allocate credits to individual projects based on state-specific qualified allocation plans. Project sponsors sell their allocated credits to a syndicator that bundles credits into investment pools. Investors looking for tax relief purchase the credits and sponsors then use the proceeds as capital for their projects.
Eligibility
Forprofit and nonprofit housing developers
Role In Creative Placemaking
While this is not a grant program with an open application, the variety of affordable housing projects than can use the credits invites creativity. Arts organizations can team with community-based developers to integrate art or cultural themes into projects, or use credits to create affordable housing and co-located studio space for artists.
Match
Not applicable, but tax credit revenue is not likely to cover the entire project cost
Role in Creative Placemaking
This section represents our attempt to capture how this specific funding opportunity might fit into a placemaking initiative.
Eligibility
Who can apply? Eligibility is often limited, but in partnership with other entities you may identify an access point, such as subgrant opportunities. This information can help you determine which potential partners in your community might be able to access the funds.
Previous Projects/Grantees
These examples show how these funds have been used for creative or placemaking endeavors in the past, the types of organizations that have successfully accessed the funds and/or the types of activities for which the funds can be used.
Max Award
Maximum funding amounts can vary from year to year. We have provided the most recent information available. Where available, we also include a median or a range in cases in which the maximum is not typical of an average award.
Match Requirement
Most federal programs require some form of cost sharing. This is expressed differently for different agencies and programs. Sometimes a direct 1:1 match is specified. Other times, the application will state the maximum percentage of a project cost that the funding award can cover. We include this information, where available, in order to give you a sense of what to expect when applying for a particular funding program.
Compliance
Most federal funding programs will require financial and progress reports at least annually, along with a final report. We consider this to be a "moderate" compliance burden. Where a higher degree of data collection and reporting is indicated, we convey that information with a "substantial" rating.