Low Income Housing Tax Credit
Created by the Tax Reform Act of 1986, the Low Income Housing Tax Credit (LIHTC) program gives State and local LIHTC-allocating agencies the equivalent of nearly $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation or new construction of rental housing targeted to lower-income households. Developers receive equity into affordable developments in exchange for keeping rents “affordable” for up to 30 years. The City of McKinney currently has 2,128 affordable multifamily units. Affordable Housing Inventory
Please see the table below to determine if you may be eligible to live in one of these affordable developments, based on the number of persons in your home.
|1 Person||2 Persons||3 Persons||4 Persons||5 Persons||6 Persons||7 Persons||8 Persons|
The Texas Department of Housing and Community Affairs (TDHCA) administers the tax credit program for the state of Texas. TDHCA requires that a City Council issue a Resolution of Support (9% tax credit applications) or a Resolution of No Objection (4% bond applications) in order for the applications to be eligible for tax credits or bond financing through the state. The City of McKinney City Council evaluates the criteria listed in the LIHTC Resolution Policy in order to decide whether to issue a Resolution in Support, Resolution of Non Objection or a Resolution of Opposition for a proposed development.
The McKinney Housing Finance Corporation (MHFC) provides financing for affordable housing and serves as an advisory body to the McKinney City Council on affordable housing issues.