Building Balance: LIHTC Properties After Year 15

Since its inception in 1986, the LIHTC program has helped create more than 3.1 million units of affordable housing, including nearly 2.6 million units affordable to low-income households. But what happens to these properties when their compliance periods end at year 15?

It turns out that most property owners—especially non-profits—continue to operate their properties as affordable housing beyond the term of IRS regulatory requirements. This is mostly due to the extended-use agreements that run with the land, but also fits with ownership’s approach to affordable housing preservation. There is also now a wide variety of sophisticated financial tools to secure the capital needed to preserve affordability.