Housing Solutions: The Low Income
Housing Tax Credit (LIHTC) Program
Robin Ambroz
Deputy Director of Programs
Nebraska Investment Finance Authority
LIHTC Program: The Details
*Established under the Tax Reform Act of 1986
*An effort to partially privatize the affordable housing
industry
*Program works by providing investor equity, thus reducing
the amount of debt service on a project, allowing lower
rents to be charged to tenants while still producing
positive cash flow
*Provides a dollar-for-dollar reduction in tax liability for
owners (and the partners of the owners)
Basic Requirements
*Low Income Units:
* Rent & Income restricted to a minimum of either
* 20% of units at 50% of AMI or
* 40% of units at 60% of AMI
* Points given in application process for lower income targeting
*Affordability Period:
* Minimum of 30 years (15-year initial compliance period & 15-year
extended use period)
* Points given in application process for longer affordability periods
How it works
*Project owners are generally Limited Partnerships or
Limited Liability Companies
*Equity generated from LIHTC typically covers 60-70% of
project costs
*Sources to fill the gap
* HOME Funds
* NE Affordable Housing Trust Funds
* FHLBank of Topeka
* Permanent Loan
* Deferred Developer Fee
* Additional Equity Contributions
Project Structure
TBD Bank
(Lender)
Tax Credit
Investor
(99.99 %
Limited
Partner)
NIFA
(Tax Credit
Allocation)
TBD
Apartments,
L.P. (Project
Owner)
NDED,
FHLBank,
City, etc.
(gap funds)
Non-Profit or
For Profit
Sponsor \
Developer
(.01%
General
Partner)
Annual Qualified
Allocation Plan (QAP)
*The QAP governs the annual distribution of tax
credits.
*QAP Process:
*Focus Group Meetings
*NIFA \ NDED planning sessions
*Public Hearing
*Board Approval
*Governor’s Approval
Application Process:
Competitive Cycle
*Threshold Review (optional)
* Applications are reviewed for the threshold requirements
* Applicant receives feedback regarding the threshold items in their
application.
*Final Review
* Applicants must meet threshold requirements before the
development can be considered for an allocation.
* Points awarded for specific items contained in the application.
Application Process: CRANE
*CRANE = Collaborative Resource Allocation for Nebraska
* Difficult-to-Develop Projects
* Negotiated Outcomes \ Individualized timelines
* Public Process \ Monthly Meetings
*Eligible Project Type:
* Housing for individuals with special needs
*Must meet all Threshold items & complete entire
application
Cirrus House
*48 units for individuals with Severe Mental Illness
completed in 3 phases
*New construction completed in 2003, 2006, and 2012
Stephen Center
*16 Two-bedroom units for men
& women in their HERO program
*Shared restroom and dining
facilities
*New construction completed in
2006
*Received allocation for
additional 61 units in 2013
People’s City Mission: Curtis
Center
*60 Single Room Occupancy Units for men
*Shared restroom & dining facilities
*New construction completed in 2008
Christian Worship Center:
New Visions
*14 Efficiency Units for
Veterans
*New construction
completed in 2010
Open Door Mission:
Rebuilding Lives
*219 units in 3 phases
* Single Room Occupancy
* One, Two, and Three Bedroom Units
* Shared common areas
* Serving men, women, and families with children
*New construction completed in 2009, 2011, and 2012
Siena / Francis House:
Siena / Francis Apartments
*48 One-bedroom units
* Shared common space
* Single men & women
*New construction completed
in 2012
Contact Information:
Teresa Kile
LIHTC Manager
teresa.kile@nifa.org
Kelly Schultze
LIHTC Assistant Manager
kelly.schultze@nifa.org
Nebraska Investment Finance Authority (NIFA)
1230 ‘O’ Street, Suite 200
Lincoln, NE 68508
402-434-3900
www.nifa.org