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Modeled after the federal LIHTC, OLIHTC allows owners of qualifying affordable rental projects to claim tax credits against state taxable liabilities over a 10-year Credit Period.
Use this form if you must recapture part of the low-income housing credit you claimed in previous years because the qualified basis decreased from one year to the next or you disposed of a building, or your interest therein, and you did not follow the procedures that would have prevented recapture of the credit.
2023/2024: Family Size (Persons in Family/Household)Annual Family Income HUD Low Income Level 1HUD Extremely Low Income Level 3 1 $70,650 $26,500 2 $80,750 $30,300 3 $90,850 $34,1006 more rows
The federal government issues tax credits to state and territorial governments. State housing agencies then award the credits to private developers of affordable rental housing projects through a competitive process. Developers generally sell the credits to private investors to obtain funding.
Most kinds of properties (single-family, multi-family, apartment complexes, and townhouses) can qualify for the LIHTC credit. An LIHTC housing project must agree to rent to tenants whose average income is below the areas median income, and this commitment must be maintained for a period of 15 years.
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If the certificate of tax credit is revoked or adjusted because you did not meet the eligibility requirements, you must recapture the amount of credit previously claimed. The amount of credit to be recaptured must be added back to tax for the tax year in which the revocation or adjustment becomes final.
The LIHTC program reduces the federal tax liability in exchange for the acquisition, rehabilitation, or construction of affordable rental housing units that will remain income and rent restricted over a long period (55 years for California).
The Section 8 HCV Program offers tenant-based assistance. Participants find their own rental housing in the open market, and pay a portion of their income towards rent. The Los Angeles County Development Authority (LACDA) subsidizes the balance of the monthly rent in direct payments to the owner.
In general, the rehabilitation credit is recaptured if the property is disposed of or ceases to be investment credit property during the 5-year recapture period. The rehabilitation credit is recaptured if the property is destroyed by a casualty within the 5-year recapture period.
What is affordable housing? In Canada, housing is considered affordable if it costs less than 30% of a households before-tax income. Many people think the term affordable housing refers only to rental housing that is subsidized by the government.

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