Federal Tax Credits
Low Income Housing Tax Credit (LIHTC) Program
Tax credit for affordable housing development, renovation and preservation. Allows Investors to claim federal income tax credits based on costs incurred to develop affordable housing. Federal government establishes minimal thresholds, but the program is administered by the states. States develop annual Qualified Allocation Plans (QAPs) that dictate criteria used to award LIHTCs. Many state QAPs require specific provisions, such as green building practices or transportation-oriented development, targeted to state development goals and objectives. LIHTC State administering agencies. Access State QAPs. [url; Novogradac Affordable Housing Resource Center]
Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks
Discusses how LIHTCs are used to finance affordable housing development and how banks and financial institutions participate as investors and lenders. Outlines risks and regulatory considerations of LIHTC investments, including impact they have on Community Reinvestment Act (CRA) examinations. Includes LIHTC-related financing case studies. [url, pdf; U.S. Office of the Comptroller of the Currency (OCC), 2014]
Energy Efficiency Tax Credits
Provides detailed information about what energy efficiency upgrades are eligible for federal income tax credits. [url; Energy Star]
Community Reinvestment Act (CRA)
Not a funding source per se. Data collected on financial institutions to fulfill CRA requirements could be used by housing and health practitioners to identify noncompliant lending institutions such as banks and credit unions. Non-compliant Institutions may be willing to work with local nonprofits to create a funding source to support healthy housing repair loans and grants as a means of coming into compliance with CRA. [url; Federal Financial Institutions Examination Council (FFIEC)]