How the Housing Credit Works

Allocation

The Housing Credit is administered by the Department of Treasury, which issues tax credits to state Housing Credit allocating agencies based on the state’s population. The allocating agencies develop Qualified Allocation Plans (QAPs) that include selection criteria, based on local priorities, to guide the type and location of affordable housing developed in each state. Developers submit applications to receive Housing Credits, and the credits are awarded to the most qualified developers through a highly competitive selection process. On average, state Housing Credit allocating agencies receive applications requesting more than three times their available authority.

Financing & Development

The Housing Credit is administered by the Department of Treasury, which issues tax credits to state Housing Credit allocating agencies based on the state’s population. The allocating agencies develop Qualified Allocation Plans (QAPs) that include selection criteria, based on local priorities, to guide the type and location of affordable housing developed in each state. Developers submit applications to receive Housing Credits, and the credits are awarded to the most qualified developers through a highly competitive selection process. On average, state Housing Credit allocating agencies receive applications requesting more than three times their available authority.

Affordable Housing Impact

Low-income families whose income are at or below 60 percent of the area median income (AMI) are able to rent Housing Credit properties, and rent payments are capped at 30 percent of the income limit for each apartment. The 3 million apartments financed by the Housing Credit have provided affordable homes to more than 7 million low-income families over the past 30 years, making it easier for them to afford other necessities like health care, transportation and nutritious food.

For more information, see the ACTION Campaign’s resources about the Housing Credit as well as in every state and congressional district.

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