Low Income Housing Tax Credit
The Alaska LIHTC program provides federal tax credits to developers for building or rehabilitating affordable rental housing for low-income Alaskans through a competitive process.
Funder: Alaska Housing Finance Corporation
Due Dates: June 2027 (anticipated pre-application) | January 2028 (anticipated award announcement)
Funding Amounts: Typical 9% LIHTC allocations: ~$300,000–$1,100,000 per project/year; 10-year tax credit period; actual award varies by project size and type.
Summary: Provides federal tax credits to developers for creating or rehabilitating affordable rental housing for low-income households in Alaska.
Key Information: Highly competitive; pre-application required; compliance and reporting obligations are substantial.
Description
The Low Income Housing Tax Credit (LIHTC) program, administered in Alaska by the Alaska Housing Finance Corporation (AHFC), incentivizes the development and operation of affordable rental housing for low-income households. Under this program, developers receive federal income tax credits over a 10-year period in exchange for constructing, acquiring, or rehabilitating rental housing and operating it according to LIHTC guidelines for a defined compliance period. Credits are typically sold to investors to raise equity, reducing the need for other financing and enabling lower rents.
The LIHTC is allocated annually through a competitive process detailed in the state's Qualified Allocation Plan (QAP) as part of the Greater Opportunities for Affordable Living (GOAL) Program. Eligible projects may include new construction, acquisition with rehabilitation, or rehabilitation of existing properties. The program is a primary driver of affordable rental housing production in Alaska.
