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Multifamily Developer FAQ

Answers to your frequently asked questions about Multifamily financing and about whether or not this workflow will work.
Answer
expand Can developers get both REACH/SPARC funding and tax credits? 
Yes, but you need to apply separately for each program.
expand Can I use Low-Income Housing Tax Credit for my single family duplex rental homes? 
expand How do tax credits work? 
A low-income housing tax credit is a dollar-for-dollar credit against the federal income tax liability of the owner (developer or investor) of a low-income housing development. Tax credits allocated to a development are claimed in equal amounts for a 10-year period. The rental property generating the credit must remain in compliance with program guidelines and rent restriction requirements for a period of not less than 30 years from the first taxable year of the credit period.
expand What exactly is the Low-Income Housing Tax Credit program? 
expand What is QAP?  
QAP, which stands for Qualified Application Plan, details the selection criteria and application requirements for housing tax credits and tax-exempt bonds. It lists all deadlines, application fees, restrictions, standards, and requirements. The QAP is what VHDA uses to choose projects for LIHTC funding.
expand What’s the difference between rental housing credit and the first-time homebuyer tax credit? 
expand Where on VHDA’s Web site can I find more information about tax credits? 
Just click on this link: Low-Income Housing Tax Credit program.