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Low-Income Housing Tax Credit (LIHTC) Program

The LIHTC Program, which is based on Section 42 of the Internal Revenue Code, was enacted by Congress in 1986 to provide the private market with an incentive to invest in affordable rental housing. Federal housing tax credits are awarded to developers of qualified projects. Developers then sell these credits to investors to raise capital (or equity) for their projects, which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. Provided the property maintains compliance with the program requirements, investors receive a dollar-for-dollar credit against their Federal tax liability each year over a period of 10 years. Each year, the IRS allocates housing tax credits to designated state agencies-typically state housing finance agencies - which in turn award the credits to developers of qualified projects. Indiana allocates housing tax credits through a competitive process.

The City of Fort Wayne's HANDS Board reviews tax credit applications and recommends to the Mayor whether or not the proposal should receive support. Fort Wayne's Mayor then chooses whether to recommend support for the project to the Indiana Housing Community Development Authority.

Local projects that have received LIHTCs include:

  • Renaissance Pointe
  • The Courtyard of Fort Wayne
  • Randall Lofts

At its September 6, 2016 meeting, the HANDS Board formally adopted this year’s selection criteria.  No substantial changes were made, except that a time parameter was clarified for communications with the Department of Planning Services.  The 2016 Final Rental Housing Project Scoring Worksheet is posted below.  Applicants should use this Worksheet to submit the required information to This email address is being protected from spambots. You need JavaScript enabled to view it. . All developers who submit applications prior to the established deadline of September 23, 2016, at 5PM (EST) will be required to present their proposed projects at the October 4, 2016 HANDS board meeting at 11AM (EST).  Immediately following presentations, the Board will hear public comment on projects presented.  The Board will then make its recommendations to Mayor Henry.  

For more information about local support for this program, email This email address is being protected from spambots. You need JavaScript enabled to view it.

 docx2016 Final Rental Housing Project Scoring Worksheet - Fill in the blank