Low-Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) program is a tax incentive program designed to increase the supply of quality, affordable housing by helping developers offset the costs of housing developments for individuals with low- to moderate-income. This program has been the largest driver of the production of new affordable housing in the state and nation over the past several years. Since 1987, OHFA has used the HTC program to facilitate the development of over 100,000 affordable housing units in Ohio.

The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable housing. Investors’ equity contribution subsidizes low-income housing development, thus allowing some units to rent at below-market rates. In return, investors receive tax credits paid in annual allotments, generally over 10 years.

Financed projects must meet eligibility requirements for at least 30 years after project completion. In other words, owners must keep the units rent restricted and available to low-income tenants. At the end of the period, the properties remain under the control of the owner.

The tax credit program includes a 4% tax credit and a competitive 9% tax credit. For both, the process for allocating tax credits is guided by federal regulations and distributed by states. For Cincinnati, the Ohio Housing Finance Agency (OHFA) competitively distributes 9% credits to projects based on priorities they set each year through the Qualified Allocation Plan (QAP).

We are not accepting requests for letters of support for 2023 LIHTC at this time. Please check back in December 2022 for updates on deadlines and how to submit a letter request form.

Submit any questions to Morgan Noel Smith, Development Officer, at morgan.smith@cincinnati-oh.gov

Historic Tax Credit

The Ohio Historic Preservation Tax Credit (OHPTC) Program is a state-level program that provides a tax credit to leverage the private redevelopment of historic buildings. This program is highly competitive and receives applications biannually, in March and September.

Applicants can receive a tax credit up to 25% of qualified rehabilitation expenditures incurred during a rehabilitation project. Projects are eligible for no more than $5 million in tax credits unless approved as a catalytic project. For Round 29, the maximum tax credit award has increased from $5 million to $10 million.

The tax credit can be applied to applicable financial institutions, foreign and domestic insurance premiums, or individual income taxes. Applicants that complete their project and receive a tax credit certificate with an effective date prior to June 30, 2019 can apply the tax credit against applicable commercial activity taxes.

Applications are received bi-annually in March and September. Applicants file a competitive application with the Ohio Development Services Agency and applicable historic rehabilitation documentation with the State Historic Preservation Office.

To receive a local letter of support for Round 29:

Submit the Request Form via Microsoft Forms: https://forms.office.com/r/LBkLjrgyud

Request Forms should be submitted by 4:00 P.M. EDT on Friday, September 2, 2022 using the Microsoft Form linked below.

Submit any questions to Morgan Noel Smith, Development Officer, at morgan.smith@cincinnati-oh.gov