Housing Tax Credit Program
Housing Tax Credit Program supports owners and investors in acquiring, rehabilitating, and building rental housing in Mississippi to provide affordable, rent-restricted homes for lower-income tenants.
Funder: Mississippi Home Corporation
Due Dates: Year-round (Tax-exempt bond / 4% applications) | Application cycle only (Competitive 9% applications)
Funding Amounts: Tax credits annually for 10 years; approximately 4% or 9% of eligible costs, limited to financial need
Summary: Tax credits support acquisition, rehabilitation, and new construction of affordable, rent-restricted rental housing in Mississippi.
Key Information: Developments must maintain at least 15 years of rent restrictions plus a minimum 15-year extended-use covenant.
Description
Mississippi Home Corporation (MHC) administers the Housing Tax Credit Program under Section 42 of the Internal Revenue Code. The program provides owners and investors in affordable-income rental housing with annual reductions in tax liability over ten years. Credits support acquisition, rehabilitation, and new construction, with allocations based on eligible development costs and the number of qualified income-restricted units.
MHC selects developments through its Qualified Allocation Plan (QAP), which sets Mississippi’s housing priorities and selection criteria. Preferences include serving the lowest-income tenants, committing to longer affordability periods, and developing housing in qualified census tracts as part of concerted community revitalization plans. Credits are limited to the amount needed to make each development financially feasible, taking all funding sources into account.
