Stoney Hill Apartments

Question: What is the tax credit program?
Answer: The tax credit program, also known as the \"federal low-income housing tax credit program\" or simply LIHTC, is a popular affordable housing program that has been around since 1987. Unlike most housing programs that are administered by HUD, the tax credit program is administered by the IRS, in coordination with state housing finance agencies across the country. Landlords who participate in the program get to claim tax credits for 10 years for their tax credit properties in return for renting their apartments to low-income tenants at a restricted rent.Question: How exactly is my rent calculated?
Answer: The maximum rent you can be required to pay for a low-income unit in a tax credit property is 30% of a percentage (usually 50% or 60%) of area median gross income (AMGI). The rent is calculated based on the number of bedrooms in the apartment, and not the actual number of people who live there. Your landlord must calculate your rent assuming that 1.5 occupants live in each bedroom (or one occupant, in the case of a studio). So, the rent for a two-bedroom apartment, for example, would be based on three occupants (1.5 x 2 bedrooms) in the apartment. The tax credit rent also includes a utility allowance.