The Washington, D.C. Department of Housing and Community Development forfeited $3.5 million in 2023 Low-Income Housing Tax Credits (LIHTC), which amounts to $35 million in lost funding over 10 years, reports Suzie Amanuel in Washington CityPaper.
According to Amanuel, “[The credits] are the biggest source of federal affordable housing funding in the nation. Developers can apply for the highly competitive 9 percent credits, which offer a substantial subsidy covering approximately 70 percent of eligible costs—those are the credits DHCD forfeited this year.”
Because the LIHTC program has strict deadlines for funds disbursement and project completion, agencies usually have around two years to use each year’s allocation. A 2024 tax document submitted by DCHD to the IRS reveals “reveals evidence of sloppiness and internal inconsistencies.”…