What is required for a property to qualify for credits under the LIHTC program?

For a property to qualify for credits under the Low-Income Housing Tax Credit (LIHTC) program, it must undergo substantial improvement that exceeds established expenditure thresholds. This requirement exists to ensure that the property meets the necessary standards for rehabilitation or construction that aligns with the goals of the LIHTC program, which is to provide affordable housing options and improve the quality of living spaces for low-income tenants.

The threshold for substantial improvement is set to ensure that the investments made in the property are significant enough to warrant the benefits of the tax credits. By requiring this level of investment, the program promotes the creation and preservation of affordable rental housing that is not just marginally better but genuinely improved to meet the standards. This focus on quality ensures that the benefits of the LIHTC program have a lasting impact on community development and housing stability for low-income families.