Housing Credits (Low Income Housing Tax Credit - LIHTC) – Alabama
Forecasted
The Alabama Housing Finance Authority’s LIHTC program competitively allocates tax credits to support the development and preservation of affordable rental housing for lower-income residents statewide.
Funder: Alabama Housing Finance Authority
Due Dates (Anticipated): January 2027 (Housing Credits (LIHTC) Application deadline, projected)
Funding Amounts: Federal income tax credits allocated competitively; typical credits provide a dollar-for-dollar reduction in federal tax liability over 10 years; award size varies by project and annual allocation plan.
Summary: Competitive tax credit program supporting the development and rehabilitation of affordable rental housing for lower-income residents throughout Alabama.
Key Information: This is a forecasted opportunity—dates and details are subject to change based on annual program cycles.
Description
The Low Income Housing Tax Credit (LIHTC) program, administered by the Alabama Housing Finance Authority (AHFA), is Alabama’s primary mechanism for incentivizing the development and rehabilitation of affordable rental housing. Through an annual, competitive cycle, AHFA allocates federal housing credits to projects that create or preserve decent, safe, and affordable rental units for lower-income households statewide. Awarded credits offer investors a dollar-for-dollar reduction in federal income tax liability over a ten-year period, in exchange for long-term commitments to affordability and compliance standards. The program is guided each year by AHFA’s allocation plan, which sets priorities and ensures that resources are targeted to areas of greatest housing need.
