Question: What's the tax credit program?
Answer: The tax credit program, also known as the "federal low-income housing tax credit program" or simply LIHTC, is a popular affordable housing program that has been around since 1987. Unlike most housing programs that are administered by HUD, the tax credit program is administered by the IRS, in coordination with state housing finance agencies across the country. Landlords who participate in the program get to claim tax credits for 10 years for their tax credit properties in return for renting at least some of their apartments to low-income tenants at a restricted rent.
Question: Is the rent based on my income?
Answer: No. Unlike other housing programs, tax credit rent is based on the average income in your county or other local area. This average is known as the "area median gross income" (AMGI), which HUD updates each year. Your actual income matters when it comes to determining if you qualify for a low-income apartment at a tax credit property. But the actual rent you pay is not based on your income.
Question: Does the number of people in my household affect eligibility?
Answer: Yes. The number of people in your household affects whether you can qualify for a low-income unit at a tax credit property. Your household must earn less than a certain percentage of area median gross income (AMGI), which is based on household size. On the other hand, the tax credit rent is not based on the actual number of people in your apartment.
Question: Is my income determined based on what I've made in the past year?
Answer: No. It's determined by looking forward and "annualizing" your income for the next year. For example, if you earn $3,000 a month at a job, this income will be counted as $36,000 (12 months x $3,000), even if it turns out you get a raise or even lose your job a month after moving into your apartment.
Question: Can I live at a tax credit property if I'm a student?
Answer: The general rule is that if everyone in your household is a full-time student, then you can't rent at a tax credit property. So if you're a full-time student with a roommate who goes to school part-time, then you're fine. If everyone in your household goes to school on a full-time basis, ask management whether you fall into an exception.
Some exceptions may apply contact onsite manager for more information.