District of Columbia Enacts New LIHTC Program
The District of Columbia’s fiscal year (FY) 2015 Budget Support Emergency Act, which became effective on Oct. 1, 2014, implements a low-income housing tax credit for the District of Columbia. As a result of the legislation, the Department of Housing and Community Development will make available $1 million in LIHTCs in FY 2015. For years following 2015, the available allocation amount will be equal to the District of Columbia’s federal LIHTC cap.
The new D.C. housing credit is modeled on the federal LIHTC program and is expected to draw more private investment into the production of affordable housing in the District of Columbia. The bill stipulates that a combined federal and District of Columbia low-income housing tax credit should be the least amount necessary to ensure financial feasibility of a project and these tax credits can be issued only to developments that also receive an allocation of federal LIHTCs.