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Tax Credit Programs


Tax credits play a vital role in the creation of affordable housing in Connecticut. They raise equity for developments and spur investment in affordable housing.

CHFA administers the Federal Low-Income Housing Tax Credit (LIHTC) program and the State Housing Tax Credit Contribution (HTCC) program.

Developers can sell these credits to corporations or investors to raise equity for their project. In exchange, developers must set aside a percentage of units for low-income residents and maintain the affordability of the units for 40 years (LIHTCs only).

Applying for tax credit financing is a complex process. LIHTCs are awarded based on how well the project meets the criteria outlined in CHFA's Qualified Allocation Plan (QAP). The QAP supports the goals of the state's housing policy.

If you are completing an application for tax credit financing for the first time, CHFA recommends you attend one of the training sessions that are offered each year.

Please see below links for more program information:

Federal Low-Income Housing Tax Credit (LIHTC) program

State Housing Tax Credit Contribution (HTCC) program

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