Housing Tax Credits
Housing Tax Credit Process
-
How Does it Work?
Housing tax credits are a way of encouraging developers to create affordable housing. In return for setting aside a percentage of units in your rental development for low-income tenants, you receive tax credits which help offset the cost of construction.
The process of how we distribute the tax credits is outlined in our Qualified Allocation Plan (QAP).
-
Housing Tax Credit Programs
9% Housing Tax Credits
We accept applications for 9% Housing Tax Credits once a year, usually in mid-March. The process is competitive and applications are ranked according to scoring criteria outlined in our Qualified Allocation Plan (QAP).
The scores in the pools are used to subdivide the available per capita credits. Reservations are then made to developments in order of rank, as long as credits are available within the given pools.
4% Housing Tax Credits
Developments financed with tax-exempt bonds are eligible to apply for housing tax credits on a rolling basis and do not need to compete for credits. These applications must meet the minimum requirements of the QAP to be eligible for Housing Tax Credits, however they do not contain the same placed-in-service time restraints as the competitive 9% Housing Tax Credits.
-
Locality Notification
Information is required to notify affected localities before you apply for federal Low Income Tax Credits.
-
Housing Tax Credit Application and Resources
Learn how the application process works for both the 4% and 9% Housing Tax Credits and how to apply for each.
The Resource and Reference Materials page contains additional information about the Housing Tax Credit program, such as videos, forms, guidelines, requirements and more.
-
Housing Tax Credit Applications Archive
We provide access to all competitive and non-competitive Housing Tax Credit reservation applications and market studies for your review.
-
IRS Form 8609 Process
IRS Form 8609 Application
Owners of residential low-income rental buildings are allowed a housing credit for each qualified building over a 10-year credit period. A separate Form 8609 must be issued for each building in a multiple building project.
For more information on the 8609 Application process, please refer to the Tax Credit Manual. -
Event and LIHTC Cycle Year Calendar
Virginia Housing provides workshops for each cycle year and for specific topics. Access our event registration below. Sessions will appear only when available.
Inclusion, Diversity, Equity and Access Resources
We define BIPOC Developers as private developers with minority ownership of 51% or greater (i.e. BIPOC) and non-profit organizations that have 51% or greater BIPOC board membership and also are BIPOC led, serving socially and/or economically disadvantaged populations.