What does compliance with LIHTC requirements ensure in terms of tenant demographics?

Compliance with Low-Income Housing Tax Credit (LIHTC) requirements specifically ensures that a designated percentage of tenants meet the low-income criteria set forth by the program. This is crucial because the LIHTC program was established to provide affordable rental housing for low-income individuals and families. By mandating that a portion of tenants qualify as low-income, the program aims to alleviate housing costs and promote economic diversity within communities.

The LIHTC requirements typically stipulate that at least 20% of the units in a building must be occupied by households whose incomes do not exceed 50% of the area median income, or at least 40% of the units must be occupied by households at or below 60% of the area median income. This ensures that the benefits of the program are directed toward those who need affordable housing most, thereby fulfilling its objectives of enhancing access to housing for low-income families and contributing to community development.

Other options do not align with the purpose of LIHTC. Tenants do not need to be homeowners, and there are no restrictions that only single individuals can reside in the units. Additionally, LIHTC clearly imposes restrictions on tenant qualifications to maintain its aim of providing affordable housing.