Which type of costs are essential for LIHTC project considerations?

For Low-Income Housing Tax Credit (LIHTC) projects, it is crucial to focus on costs directly associated with the development of low-income housing. These costs include construction, site acquisition, and any other expenses directly tied to creating housing that meets the needs of low-income individuals or families. These expenditures are foundational to the successful implementation of LIHTC projects since they contribute to fulfilling the program's objective of increasing the availability of affordable housing.

On the other hand, personal expenses of developers, marketing costs for tenant recruitment, and personal legal fees do not directly pertain to the construction or development of low-income housing and hence are not considered essential costs in the context of LIHTC project considerations. Understanding where project funding is directed and ensuring it aligns with the purpose of the LIHTC program is key to maximizing the effectiveness of these tax credits.