Investors and/or owners invest cash in a tax credit housing development and receive a dollar-for-dollar credit against their federal income tax liability each year for 10 years. In exchange for receiving the credit, owners agree to set aside for 30 years at least 20% of the units for households with income less than 50% of the county median income (CMI), or set aside at least 40% of the units for households with income less than 60% of CMI.
If you have a development proposal that may qualify and would like to know more about tax credits, contact a
Commercial Loan Officer.
Tax credits are awarded to proposals that meet the WHEDA standard for housing quality and need. Among other criteria, we review:
Yes. In fact, often other resources are needed to keep primary financing at a level that permits the development to be feasible at affordable rent levels. Although there are restrictions, tax credits may be combined with WHEDA financing, Community Development Block Grants (CDBG), Federal Home Loan Bank grants or loans, the Home Investment Partnership Program, and other types of local loans or grants. For more detailed information, contact a Commercial Lending Officer.