Federal Programs
Every major federal program used to finance affordable housing — tax credits, HUD grants, rental assistance, and conversion programs. Written by practitioners.
Federal Tax Credits
Dollar-for-dollar federal tax credits that anchor most affordable housing capital stacks. The largest production engine in U.S. housing finance.
LIHTC
The Low-Income Housing Tax Credit — largest federal affordable housing program. Permanent 12% boost and 25% bond threshold under OBBBA 2025.
Open Guide →Opportunity Zones
Capital gains deferral and 10-year appreciation exclusion in designated census tracts. Now permanent law under OBBBA 2025 with Rural OZ category.
Open Guide →Historic Tax Credit (HTC)
20% federal credit for certified historic structures. Frequently paired with LIHTC and OZ in adaptive reuse and rehabilitation projects.
Open Guide →New Markets Tax Credit (NMTC)
39% credit (claimed over 7 years) for qualified investments in low-income community projects. Made permanent at $5B annual cap under OBBBA 2025.
Open Guide →Programs by Common Deal Structure
Most affordable housing deals layer multiple programs. Deep-dive deal-structure guides are in development — below is a preview of the six structures we'll cover first.
9% LIHTC New Construction
Typical stack: 9% LIHTC equity + HOME / state HFA gap + FHLB AHP + deferred developer fee + permanent debt.
4% LIHTC + Tax-Exempt Bonds
Typical stack: Tax-exempt bonds (≥25% under OBBBA) + 4% LIHTC equity + soft debt + state subsidy + permanent take-out.
LIHTC Preservation / Recapitalization
Typical stack: 4% LIHTC resyndication + RAD conversion (if public housing) + HOME / HTF + state preservation funds.
Extremely Low-Income Targeting
Typical stack: LIHTC (income averaging with units targeted at 30% AMI) + Housing Trust Fund (HTF) + Section 8 PBV / PBRA operating subsidy.
Historic Rehabilitation
Typical stack: LIHTC + 20% federal Historic Tax Credit + state HTC (in select states) + traditional gap sources.
Opportunity Zone Affordable
Typical stack: QOF equity (10-year hold) + LIHTC or workforce housing structure + state OZ enhancers + traditional debt.
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HUD Subsidy Programs
Formula grants and discretionary subsidies that fill the gaps in tax credit capital stacks. Soft debt, gap financing, and operating subsidies.
HOME Investment Partnerships
Formula grants to participating jurisdictions. Commonly used as subordinate debt or grant equity in LIHTC capital stacks.
Open Guide →Housing Trust Fund (HTF)
Formula grants targeting extremely low-income households (≤30% AMI). Pairs with LIHTC to enable deeper affordability than LIHTC alone supports.
Open Guide →Community Development Block Grant (CDBG)
Flexible formula grants for affordable housing, infrastructure, and economic development activities. Common gap financing source.
Open Guide →Rental Assistance Programs
Project-based and tenant-based rental assistance, public housing conversion programs, and supportive housing for specific populations.
Rental Assistance Demonstration (RAD)
Converts public housing units to Section 8 project-based assistance. Frequently combined with LIHTC for recapitalization.
Open Guide →Section 8 (PBV, PBRA, HCV)
HUD's primary rental assistance programs. Project-based contracts attached to LIHTC properties significantly improve operating economics.
Open Guide →Section 202 / Section 811
Supportive housing programs for elderly households (202) and persons with disabilities (811). Capital advances plus project rental assistance.
Read the 202/811 guide →USDA Rural Development
Section 515 direct loans, Section 538 guaranteed loans, Section 521 Rural Rental Assistance, and the MPR preservation program. Twinning with 4% LIHTC + bonds for rural affordable housing.
Read the USDA Rural guide →Don't see the program you're looking for?
Pro subscribers get full federal program library plus 30 AI Q&A questions per day to ask specifics about any program — eligibility, structure, deal mechanics.