4% Low-Income Housing Tax Credit (LIHTC) Program

  • 4% LIHTC Program

United State Code: 26 U.S.C. §42
Code of Federal Regulations: 24 C.F.R. §§1.42-1 – 1.42-19T

The Low-Income Housing Tax Credit (LIHTC) program, created in 1986 and made permanent in 1993, is an indirect federal incentive used to finance the construction and rehabilitation of affordable rental housing. The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing investment equity to develop affordable rental housing. Investors' equity contribution helps developments maintain financial viability while restricting rents to affordable levels. In return, investors receive tax credits paid in annual allotments, generally over 10 years. LIHTC-financed developments must keep the units rent restricted and available to low-income tenants for at least 30 years. Ohio's LIHTC program is operated by the Ohio Housing Finance Agency (OHFA). Within general guidelines set by the Internal Revenue Service (IRS), state Housing Finance Agencies (HFAs) like OHFA administer the LIHTC program. State agencies review LIHTC applications submitted by developers and allocate the credits. The IRS requires that state Qualified Allocation Plans (QAPs) prioritize developments that serve the lowest-income tenants and ensure affordability for the longest period, among other criteria.

4 Percent

The LIHTC is designed to finance a portion of the total development costs of a development via an up-front equity investment by an investor in exchange for the tax credit benefit. The amount of equity is the result of a calculation based upon the amount of eligible expenses and which the LIHTC type is claimed, either a 4% credit, or a 9% credit. 4% credits are considered non-competitive, meaning that as long as a development meets the program requirements, the development will be awarded LIHTCs. Developments seeking 4% credits receive an equity investment that amounts to approximately 30-40% of the development's total development cost. Due to the smaller equity investment, 4% LIHTC developments often require higher amounts of alternative funding streams to make the development viable.

Guidelines

4% QAP

Affordable Assisted Living

Additional Guidelines

2027 Design and Architectural Standards (DAS) Update – Stakeholder Summary & Engagement

OHFA's first 2027 DAS updates stakeholder session titled "DAS! What I'm Talking About" was held at the Ohio Housing Conference on November 12, 2025. That session included roundtables discussing a variety of topics.

Prior to the first draft of the 2027 DAS, OHFA will be holding several more stakeholder engagement opportunities. In 2026, OHFA anticipates having three stakeholder meetings in person at OHFA in addition to virtually in February and three stakeholder meetings to be held in locations throughout Ohio in March. Please stay tuned for additional details on dates, times, topics, and locations.

The Summary of 1st Stakeholder Engagement for the 2027 Design and Architectural Standards (DAS) Update can be found by clicking the button below.

Review Summary

Have thoughts on the DAS now, contact DAS@ohiohome.org.

Prior Year's Guidelines

Pending Applications & Funded Projects

Forms

2025

Submitting an Application

Capital Needs Assessment Documents

Market Study Documents

Uniform Relocation Documents

Ancillary Programs

Post Award

Rent Election

Closing

The goal of the legal team is to work with development partners to closing gap financing loans and grants awarded by the OHFA Board in an expedient manner. Before submitting the required documentation for closing, owners must have a fully executed Funding Agreement and/or Commitment Letter from the Office of Planning, Preservation, and Development.

Project Administration

Once a project has been approved by the board, and funding documents have been issued, it will transition to Project Administration.

Applicable Underwriting Guidelines By Year

Additional RC Documentation

8609 Request

Quarterly Construction Monitoring

OHFA monitors progress throughout construction. For more details please review Updates to OHFA Multifamily Construction Monitoring.

Submission of the OHFA Quarterly Construction Monitoring Form is required for 9% and 4% Housing Tax Credit and HDAP projects. The Report must be submitted on a quarterly basis beginning the first quarterly reporting period following OHFA Board approval through 100% construction completion. Reports are due January 1, April 1, July 1, and October 1 of each year until the project is placed in service. Outstanding submissions may impact a project's ability to receive future award funding and be reimbursed on a timely basis.

Applicable Design and Architectural Standards By Year
Clarifications to Design and Architectural Standards

Contact Information

Questions and correspondence regarding the 4% LIHTC program may be directed to:

General Questions: 4percentcomments@ohiohome.org
Project-Specific Questions:
Application-Post Award: Your Assigned Development Analyst
During Project Administration (PA): Your Assigned PA Analyst
Development Division
Ohio Housing Finance Agency
2600 Corporate Exchange Drive, Suite 300
Columbus, OH 43231

Multifamily Housing Development Programs