Tap to get financing
HUD 223(f) Loans
Loan information
Loan FactsTerms, Qualifications, and GuidelinesHUD Multifamily LoansRatesCompliance RequirementsLIHTC Pilot ProgramAcquisition LoansRefinance LoansCosts and Fees
About
About UsContact UsLeadershipTeamWe're Hiring
Knowledge Base
HUD 223(f) FAQsGlossary
Application
ChecklistAttorney Closing ChecklistClosing ChecklistFirm Application Checklist
Developers
Third-Party ReportsAppraisal RequirementsEnvironmental AssessmentsMarket StudiesProject Capital Needs AssessmentsSeismic Reports
Get financing
Was This Article Helpful?
Newly Published
Nov 21 at HUD 223(f) Loans
What is Underwriting?
Nov 21 at HUD 223(f) Loans
What are Trended Rents?
Nov 21 at HUD 223(f) Loans
What are Rental Assistance Properties?
Explore the Janover Network
Jan 30 at Commercial Real Estate Loans
Top 5 Markets for Medical Office Investing in 2023
Jan 30 at Multifamily Loans
Multifamily Minute Reader Reflections: How Do You Market Multifamily?
Jan 27 at Multifamily Loans
4 Steps to Increase Your Apartment Building's Occupancy
Glossary
Last updated on Sep 22, 2022
2 min read

What are 4% and 9% LIHTC Credits?

Low-Income Housing Tax Credits , or LIHTCs, are used to either construct new rental buildings or renovate existing buildings. Two annual tax credits are available for HUD multifamily financing. The nature of the project dictates the credit received. The 4% tax credit (30% subsidy) is for th

Apply for a loan in minutes and get multiple quotes today → Get Quotes

In this article:
  1. Low-Income Housing Tax Credits and the HUD 223(f) Loan Program
  2. What are the Requirements for the LIHTC Program?
  3. Get Financing

Low-Income Housing Tax Credits and the HUD 223(f) Loan Program

Low-Income Housing Tax Credits, or LIHTCs, are used to either construct new rental buildings or renovate existing buildings. Two annual tax credits are available for HUD multifamily financing. The nature of the project dictates the credit received. The 4% tax credit (30% subsidy) is for the acquisition of existing buildings for rehabilitation and new construction financed by tax-exempt bonds. The 9% tax credit (70% subsidy) is usually for new construction and substantial rehabilitation without federal subsidies. Either tax credit can be claimed for up to 10 years. The percentages are approximately equivalent to 4% or 9% of the project’s construction cost. The Internal Revenue Code specifies the subsidy levels (30% and 70%), not the tax credits (4% or 9%).

What are the Requirements for the LIHTC Program?

In order to qualify for the LIHTC program, a building must reserve a certain number of units for low-income residents. In most cases, they must either follow one of two “rules”: the “20/50 rule” or the “40/60 rule.” The 20/50 rule requires that at least 20% of a property’s units be rented to tenants who earn 50% or less of the area median income (AMI), while the 40/60 rule requires that at least 40% of a property’s units be rented to tenants who earn 60% or less of the AMI.  

TO LEARN MORE ABOUT FHA 223F LOANS, FILL OUT THE FORM BELOW AND A HUD LENDING EXPERT WILL GET IN TOUCH. 

In this article:
  1. Low-Income Housing Tax Credits and the HUD 223(f) Loan Program
  2. What are the Requirements for the LIHTC Program?
  3. Get Financing
Categories
  • HUD 223(f) Loans
  • HUD 223(f) Loan
Tags
  • HUD 223(f) Loan
  • HUD 223(f) Loans
  • LIHTC
  • LIHTC 223(f)
  • Low-Income Housing Tax Credits

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

HUD 223(f) Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@hud223f.loans

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.