Low-Income Housing Tax Credit:

Project Support

The Low-Income Housing Tax Credit ("LIHTC") Program is a highly competitive state-level program providing tax credits to leverage private redevelopment that increases the supply of high-quality, affordable housing. Doing this offsets the cost of housing development for individuals with low- to moderate-income, helping to make projects more feasible.

The City of Cincinnati provides letters of support to give Cincinnati projects a more competitive application. All requests will be reviewed by a DCED staff member for completeness and alignment with program priorities. Support letters include a local letter of support signed by the Mayor of Cincinnati and a conditional financial commitment letter (see example linked below) from the Department of Community and Economic Development ("DCED") documenting the project’s eligibility for other City programming, such as Commercial CRA Tax Abatements or gap financing. 

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Goal​

Cincinnati has a housing supply shortage; matched with increased demand, this leads to higher housing costs and a deficit of affordable housing options for residents. In recognition of this, DCED aims to activate and encourage proactive and targeted housing development, supporting quality and diverse housing options, as well as supportive housing services for a variety of income levels. Funding local projects through the LIHTC is a crucial piece of financing the creation and preservation of affordable housing, bringing new units online.

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Who Can Apply?

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• Affordable Housing Developers seeking to submit a 9% LIHTC application to the Ohio Housing  Finance Agency (OHFA).

Overview of Process

The Ohio Housing Finance Agency ("OHFA") accepts applications on an annual basis, typically in January or February. Approximately two months before each year’s application due date, the City of Cincinnati support letter request form will open on DCED’s website, linked below. Interested affordable housing developers should follow the instructions and fill out the form when it becomes available.