What does LIHTC resyndication involve?

LIHTC resyndication specifically pertains to the process where a property that has already received Low-Income Housing Tax Credits (LIHTC) seeks a new allocation of these tax credits after its initial compliance period. This typically occurs when the original credits have expired, allowing the property to be renovated or significantly improved while becoming eligible for a new round of tax credits. This process is crucial for maintaining and potentially increasing the availability of affordable housing, as it facilitates the continued operation and upkeep of these properties.

The option regarding the second allocation of tax credits accurately describes this process, as it highlights the opportunity for properties to benefit from LIHTC incentives a second time, ensuring the long-term viability of affordable housing. The focus of resyndication is thus primarily on obtaining new tax credits rather than on the other elements like property ownership transfer or expansion of housing units, which are not inherent to the definition or process of resyndication.