Demand for affordable housing remains high across the country. To meet this need, private developers and public housing authorities use financial incentives, such as Low-Income Housing Tax Credits (LIHTCs) and Historic Tax Credits (HTCs), to update their existing housing stock.
This month’s Novogradac Journal of Tax Credits Tool Box article examines how developers are successfully twinning the 20% federal historic tax credit with the 4% or 9% LIHTC in rural areas of the nation. In the small and rural community of Taft, Texas, for example, developer Housing Solutions Alliance worked with the local housing authority to complete a twinned HTC-LIHTC transaction that rehabilitated 72 affordable housing units within the 1960s Ranch Style buildings. Apartment units throughout were transformed with updated fixtures and finishes. The end result illustrates the positive impact HTCs can have on these communities.