Low-Income Housing Tax Credit awards will fund the construction of 67 new units of permanent supportive housing in partnership.
In a major milestone for community-focused real estate development, FSH (Full name of FSH if available) has been awarded $13 million in Low-Income Housing Tax Credit (LIHTC) equity — a significant win that will help drive the creation and preservation of affordable rental housing. This award underscores the continued importance of federal tax incentives in addressing the growing need for quality, affordable homes nationwide.
What Is LIHTC — and Why It Matters
The Low-Income Housing Tax Credit (LIHTC) is the United States’ primary tool for stimulating private investment in affordable rental housing. Created under the Tax Reform Act of 1986, the program allocates federal tax credits to state housing agencies, which then competitively award them to developers building or rehabilitating affordable housing projects.
Once a developer receives an LIHTC allocation, they typically sell the credits to investors — raising upfront equity capital that can be used to fund construction and development costs. This equity reduces reliance on loans and allows developers to offer rents that are affordable to households at or below specified income levels (often tied to area median income benchmarks).
This equity infusion is often a lifeline for projects that might otherwise struggle to pencil out financially due to the high cost of land, materials, and labor.
