Low Income Housing Tax Credit (LIHTC) Program


  • Illinois Housing Development Authority (IHDA)
  • 111 E. Wacker Drive, Suite 1000
  • Chicago, IL 60601
  • Phone: (312) 836-5200
  • Fax: (312) 832-5386
  • TDD: (866) 324-4431
  • Website:

Purpose of the Program

The Low income Housing tax Credit Program works to increase the availability and affordability of rental housing.  By providing a direct dollar-for-dollar reduction in tax liability for ten years (with a fifteen year compliance period), tax credits help to provide funds for rental developments ranging in size from a single-family house to a multi-family project comprised of several hundred units. Tax credits are sold to investors seeking tax benefits in order to raise equity for a project. Tax credits are combined with various forms of debt financing from conventional and governmental sources. The State issues a Qualifying Allocation Plan (QAP) each year which details the application process and allocation criteria. Of note is in 2011, it began utilizing geographic set asides, and in it’s 2020-2021 QAP, 20% of the State’s annual allotment of credits are allocated to projects located in non-metro areas.

For more information, please go to https://www.ihda.org/developers/tax-credits/low-income-tax-credit/.

Who is Eligible

Both non-profit and for-profit organizations, or partnerships comprised of both, are eligible to apply.  The maximum rent that can be charged is based upon the Area Median Income (“AMI”) and is capped at 80% of AMI. Rents must be kept affordable for a 15-year initial “compliance period” and a subsequent 15-year “extended use period”. Once a project is placed in service, low income unit rents must remain affordable for a minimum of 15 years.

For more information, please go to https://www.ihda.org/developers/tax-credits/low-income-tax-credit/.

Application Process

Applications are generally accepted during one or two application rounds each calendar year.  In addition, application workshops are generally held in November of each year.

For more information, please go to https://www.ihda.org/developers/tax-credits/low-income-tax-credit/.

Availability of Funds

Varies by year based on population.

How Funds are to be used

Eligible activities include new housing construction and acquisition with housing rehabilitation of existing buildings.

For more information, please go to https://www.ihda.org/developers/tax-credits/low-income-tax-credit/

Types of Assistance

tax credits that can be sold and converted to equity for the applicant/recipient

Year Program was established

1986