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 of 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).

To receive a letter of support for 2024 LIHTC:

Submit the Request Form via Microsoft Forms: https://forms.office.com/r/3YPx9dXJPr

Request Forms should be submitted by 4:00 P.M. EDT on Friday, December 29th, 2023, using the Microsoft Form linked above.

Submit any questions to Morgan Rahe, at morgan.rahe@cincinnati-oh.gov.

Helpful Links:

LIHTC 2023 Letter Request Form [Microsoft Form]

OHFA Housing Tax Credit Program [External Link]

2024-2025 9% LIHTC QAP [PDF]

Zoning Verification Letter Request [PDF]

Historic Tax Credit

The Ohio Historic Preservation Tax Credit (OHPTC) Program is a highly competitive state-level program providing tax credits to leverage private redevelopment of historic buildings.

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. Credits can be applied to appropriate financial institutions, foreign and domestic insurance premiums, or individual income taxes. Applicants who 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.

We are not accepting requests for letters of support for Round 32 OHPTC at this time. Please check back in January 2024 for updates on deadlines and how to submit a letter request form.

Submit any questions to Morgan Rahe, Development Officer, at morgan.rahe@cincinnati-oh.gov

Submit any questions to Roy Hackworth at roy.hackworth@cincinnati-oh.gov.