Low Income Housing Tax Credits

Who Can Benefit from Low Income Housing Tax Credits

The Low Income Housing Tax Credits program benefits people with low incomes. Housing developers using this program promise affordable housing units for people with low incomes. Ohio gives additional incentives for developers who promise part of the housing for people who have mental illness or physical disabilities.

What is the Low Income Housing Tax Credits Program

The Low Income Housing Tax Credits program gives federal tax credits to housing developers to develop housing for persons with low incomes. Each state can set up a program that will respond to its own special needs. When a developer applies for a tax credit, the developer's housing proposal gets a score. In Ohio, developers can get extra points on its application if the developer sets aside a part of the housing development for people with mental illness or physical disabilities.

How can a Person Apply for Low Income Housing Tax Credits

Housing developers apply for the Low Income Housing Tax Credit by contacting the Ohio Housing Finance Agency, Office of Planning, Preservation and Development at 614-466-0400.

Pros and Cons of the Program

Pros of the Low Income Housing Tax Credits Program

• increases affordable housing through tax credits;
• in Ohio, this program encourages housing for persons with certain disabilities, potentially persons with TBI (incentives to serve people with TBI could be added to the system if Ohio had a system to identify and refer people with TBI);
• provides at least 30 housing units for people who have vouchers (e.g. Housing Choice Vouchers)
• more housing is available to people who have income which is too high for most housing assistance programs, but too low to afford usual rent.

Cons of the Low Income Housing Tax Credits Program

• people with low and extremely low income still need voucher assistance to afford this housing;
• some developers refuse Housing Choice vouchers (subsidies) even though they are required to accept them;
• right now in Ohio, developers are only developing housing for persons with mental illness;
• developers have no place to contact to try to reach people with TBI. Developers would need this if they wanted to target people with TBI to get them to live in the housing development.

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