Low-Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) program is the most important resource for creating affordable housing in the United States today. The LIHTC database, created by HUD and available to the public since 1997, contains information on 48,672 projects and 3.23 million housing units placed in service between 1987 and 2018.

Program criteria require affordable rents to low-income households often for a period of 30 years, but with a minimum of 15 years. These units typically are made affordable to households earning 50% to 60% of the area median income (AMI). Currently, a housing unit is deemed affordable if the household is paying no more than 30% of its income for housing costs (including utilities).

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. Federal regulations incentivize development in high-poverty census tracts and areas where development is most difficult because of high construction costs, among other criteria. 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).

Financing and structuring an LIHTC deal requires several partners. In addition to federal, state, and often local government agencies, deals involve equity investors, who invest in a property in exchange for tax credits; attorneys, who navigate the legal process; and project developers or owners, who build and manage the property. Sometimes other housing funds are leveraged to finance projects. These funds can include the HOME Investment Partnerships Program and the Community Development Block Grant program, both run by the US Department of Housing and Urban Development.

For Developers to receive letters supporting their LIHTC applications to OHFA, they will need to submit the one-page letter request form and any attachments to the Department of Community & Economic Development by Friday, January 14, 2022, by 3:00 PM EST. Click the link below to access the LIHTC Letter Request Form. Submissions should be sent to anthony.cadle@cincinnati-oh.gov. 

If you have any questions regarding the process or would like to schedule a meeting to learn more, please contact Anthony Cadle, Development Manager at (513) 352-6118 or anthony.cadle@cincinnati-oh.gov.

Historic Tax Credit

The Ohio Historic Preservation Tax Credit Program provides a state tax credit up to 25 percent of qualified rehabilitation expenditures incurred during a rehabilitation projects. Applicants are eligible for no more than $5 million in tax credits unless approved as a catalytic project.

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 for the Ohio Historic Preservation Tax Credit. Applicants file a competitive application with the Ohio Development Services Agency and applicable historic rehabilitation documentation with the State Historic Preservation Office.

The Ohio Historic Preservation Tax Credit 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.

To receive a local letter of support for Round 28:

Submit the Request Form to Morgan Smith at morgan.smith@cincinnati-oh.gov

Request Forms should be submitted by 3:00 P.M. EDT on Thursday, March 10, 2022, or three weeks before applications are due to the State.