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Ask The Apartment Experts: What Is A Tax Credit Apartment?

Ask The Apartment Experts: What Is A Tax Credit Apartment?

What Is A Tax Credit Apartment?

You may have seen the terms tax credit, workforce housing, or income restricted housing during your apartment search and wondered what that meant.

The City of Washington, DC has several different affordable housing types available for its residents. Tax credit sometimes gets confused with subsidy programs or IZ units or other types of housing, but tax credits work a little bit different.

Tax Credit Property Definition: A tax credit property is an apartment building owned by a landlord who participates in the federal low-income housing tax credit program. These landlords get to claim income tax credits for eligible buildings in return for renting some or all of the apartments to low-income tenants at a restricted rent. Also referred to as LITCH {Low-income tax credit housing}

What are the income restrictions used to qualify for tax credit housing?

Below is the chart that displays the maximum income your household can make and still qualify for tax credit housing.  You’ll see that the number of people making up your household slightly affects the max income your household can make.

Low-Income Housing Tax Credit Income Limits

 

How Do You Qualify For Tax Credit Apartments?

Tax credit apartment homes sometimes referred to as ‘workforce housing,’ are available for rent by anyone who falls into the income guidelines. BUT the Tax credit applications are long and detailed. Be prepared to provide:

  • Six current pay stubs
  • Most recent bank statement for each account you have open
  • If unemployed – Proof of unemployment compensation or worker compensation
  • If retired – Current proof of pension, retirement compensation, SS, or SSI benefit statement.
  • If disabled – Current proof of social security, SSI, and/or other disability pay {if applicable}.
  • If you receive income from public assistance – Current print out of your cash assistance benefits
  • If you receive child support, kinship care payments, and/or adoption assistance payments – Proof of such income

As you can see, a number of documents are required to determine your income category, and it’s up to you to collect and have all the information submitted in a timely fashion.

How can I find Tax Credit housing?

If you fall within the income guidelines above, you can now search for tax credit apartments on Apartminty! When you are filling out your search criteria, under the extras section, check the box for “Affordable Housing” and we will highlight available tax credit apartments that match your search criteria.

 

Find more information about Tax Credit, as well as other types of affordable housing you can find in DC here.

 

About The Author

Holli

Not one to settle for status quo, Holli has spent her 15 year career shaking up the multifamily industry. From creating unheard of building amenities to designing lounge-like leasing centers, to major Pinterest fails in the kitchen, she is ever experimenting. It’s no surprise that she created a new way to match apartment renters with their perfect home. Holli is a featured speaker and session facilitator at regional and national industry conferences. When she’s not brainstorming the next marketing campaign, you can find Holli testing the limits of bottomless brunch or beating her boyfriend at Jeopardy.

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