topic:
Getting to Know the Low Income Housing Tax Credit (LIHTC) Program

Is the Low Income Housing Tax Credit (LIHTC) program the same as Section 8 rental housing? No, it isn’t. Section 8 is a program that provides a direct rental subsidy, on behalf of a specific person, to assist in direct payment to the landlord toward the tenant’s rental cost.

The LIHTC program provides “subsidy” in the upfront financing to build and/or rehab a property that allows the rents to be lower than the market rate making the property an affordable housing option for those individuals who make 60% or less of the area median income (AMI).

The LIHTC program provides the funding mechanism to generate equity infusions into the financing that allows the permanent amortizing loan on the property to be much less than a conventional property, thus the ability to offer lower rents since a smaller debt is being serviced. LIHTC is a path to providing more affordable housing options for those who need them.

ThomasTammyTammy H. Thomas
SVP OF AFFORDABLE HOUSING
1854 Midland Trail
Shelbyville, KY 40065
502.647.7142
tht@cubbank.com

www.cubbank.com

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