Housing Tax Credits

Housing tax credits are a way of encouraging developers to create affordable housing. In return for setting aside a percentage of units in your rental development for low-income tenants, you receive tax credits which help offset the cost of construction.

The process of how we distribute the tax credits is outlined in our Qualified Allocation Plan (QAP).

• 2023 QAP
• Tax Credit Manual

9% Housing Tax Credits

We accept applications for 9% Housing Tax Credits once a year, usually in mid-March. The process is competitive and applications are ranked according to scoring criteria outlined in our Qualified Allocation Plan (QAP).

The scores in the pools are used to subdivide the available per capita credits. Reservations are then made to developments in order of rank, as long as credits are available within the given pools.

4% Housing Tax Credits

Developments financed with tax-exempt bonds are eligible to apply for housing tax credits on a rolling basis and do not need to compete for credits. These applications must meet the minimum requirements of the QAP to be eligible for Housing Tax Credits, however they do not contain the same placed-in-service time restraints as the competitive 9% Housing Tax Credits.

Information is required to notify affected localities before you apply for federal Low Income Tax Credits.

Access Locality Notification Information Portal

Learn how the application process works for both the 4% and 9% Housing Tax Credits and how to apply for each.

The Resource and Reference Materials page contains additional information about the Housing Tax Credit program, such as videos, forms, guidelines, requirements and more.

We provide access to all competitive and non-competitive Housing Tax Credit reservation applications and market studies for your review.

IRS Form 8609 Application

Owners of residential low-income rental buildings are allowed a housing credit for each qualified building over a 10-year credit period. A separate Form 8609 must be issued for each building in a multiple building project.

• Certification of Sources and Uses
• Independent Auditor's Report Form
• Final Cost Certification
• General Contractor Cost Certification Worksheet
  


For more information on the 8609 Application process, please refer to the Tax Credit Manual.

• 2023 LIHTC Calendar

Virginia Housing provides workshops for each cycle year and for specific topics. Access our event registration below. Sessions will appear only when available.