Low-Income Housing Tax Credit (LIHTC) Program
Forecasted
Low-Income Housing Tax Credit (LIHTC) Program supports private and nonprofit developers building, acquiring, and rehabilitating rental housing in Hawaii to offer below-market rents.
Funder: Hawaii Housing Finance and Development Corporation
Due Dates (Anticipated): January 2027 (LOI and fee payment) | February 2027 (Final application)
Funding Amounts: Federal 9% or 4% tax credits over 10 years; state credits equal 50% of federal credits
Summary: Tax credits support development, acquisition, and rehabilitation of affordable rental housing in Hawaii.
Key Information: Applicants must commit to at least 45 years of affordability under the 2026 Qualified Allocation Plan.
Description
The Low-Income Housing Tax Credit (LIHTC) program encourages investment in affordable rental housing by providing dollar-for-dollar reductions in income tax liability. Credits can generate project equity and lower construction and financing costs, allowing private developers and nonprofit entities to offer below-market rents. Eligible work includes new construction and acquisition and rehabilitation of rental housing.
The Internal Revenue Service administers the federal program, while the Hawaii Housing Finance and Development Corporation (HHFDC) allocates federal and state credits in Hawaii. Its Qualified Allocation Plan (QAP) establishes project thresholds, competitive selection criteria, and compliance monitoring requirements. Awards are limited to the minimum credits HHFDC determines necessary for project feasibility, with priorities reflecting statewide housing needs, development readiness, resource efficiency, and long-term affordability.
