Within what time frame do the first three stages in the life of a LIHTC property typically occur?

The first three stages in the life of a Low-Income Housing Tax Credit (LIHTC) property generally unfold over a three-year time frame. This includes crucial phases such as the allocation of credits, the construction or rehabilitation of the property, and the leasing up of the units to eligible tenants.

During the first year, the property typically receives its allocation of tax credits, which can involve significant planning and coordination with various stakeholders, including developers and local housing authorities. Following this, in the second year, the focus shifts primarily to the construction or rehabilitation phase, where the property is physically built or improved to meet specific affordable housing standards.

The third year generally involves the leasing phase, where the project opens to tenants, and lease-up efforts are made to reach the occupancy levels required to maintain the tax credit benefits. Each of these stages is critical to the overall success of the LIHTC program and the long-term viability of the affordable housing project. Thus, stating that these initial stages occur within a three-year timeframe accurately reflects the typical process and timeline associated with LIHTC properties.