What does "deep targeting" imply in the context of LIHTC properties?

Deep targeting refers to the strategy of prioritizing housing for extremely low-income tenants, often those earning below 30% of the Area Median Income (AMI). This approach is critical in the context of Low-Income Housing Tax Credit (LIHTC) properties as it aims to address the specific needs of the most vulnerable populations who may struggle to find affordable housing options. By focusing on this demographic, programs and developments can ensure that they are effectively contributing to alleviating housing insecurity and promoting affordability for those who need it most.

In contrast, the other choices involve more general strategies. Including a variety of income levels contributes to mixed-income developments but does not specifically prioritize the lowest-income tenants, while building luxury units alongside affordable ones can create a range of housing types but may not effectively serve lower-income populations. Developing properties across urban and rural settings speaks to geographic diversification rather than the targeting of income levels within housing projects. Therefore, deep targeting specifically emphasizes the commitment to serve the lowest income brackets in order to maximize social impact and accessibility.