The Department of Housing and Community Development (DHCD) administers the federal Low Income Housing Tax Credit (LIHTC) Program. Created by the The Tax Reform Act of 1986, the LIHTC program is designed to encourage the private sector to invest in the construction and rehabilitation of housing for low and moderate-income individuals and families.

Project owner/investors can claim the LIHTC on their federal income tax return each year for a period of 10 full years. However, projects generally must meet certain requirements for low-income use for 30 years.

DHCD has a Qualified Allocation Plan (QAP), which is the agency’s federally mandated state plan for the allocation of credits allotted to the District by the LIHTC program.