Low-Income Housing Tax Credit Program

Nevada Housing Division administers the Low Income Housing Tax Credit (LIHTC) program and is required as the state’s housing credit agency, to adopt a Plan describing the process for the allocation of housing credits.  Section 42 of the Internal Revenue Code (IRC or the Code) is the federal statute establishing the tax credit program.  In accordance with Section 42, each state allocating agency must have a Qualified Allocation Plan (QAP or Plan) which: 

• Sets forth selection criteria to be used to determine housing priorities
• Gives preference among selected projects to: 
  • Projects serving low income
  • Projects obligated to serve qualified tenants for the longest periods 
   
• Includes the following selection criteria: 
  • Project location 
  • Housing needs characteristics 
  • Project characteristics
  • Applicant characteristics 
  • Tenant populations with special housing needs 
  • Tenant populations of individuals with children 
  • Projects intended for eventual tenant ownership 
  • The energy efficiency of projects 
  • Projects of a historic nature 
   

In 1975, the Nevada Legislature determined that there was a shortage of safe, decent, and sanitary housing throughout the State for persons and families of low and moderate income.  To address this Statewide deficiency, and to ensure that there would be sufficient safe, decent and sanitary housing for persons and families of low and moderate income, the Legislature enacted Chapter 319 of Nevada Revised Statutes (NRS) Chapter 319, “Assistance to Finance Housing”, establishing and granting powers to the Nevada Housing Division (the “Division” or “NHD”).  Thereafter, the Division’s implementing regulations were enacted as Chapter 319 of the Nevada Administrative Code (“NAC”).  

With respect to the Nevada LIHTC program, NRS Chapter 319 and NAC Chapter 319 implement, and are used in concert with, IRC Section 42.   

There are 2 methods of obtaining a Tax Credit allocation under a QAP: 1) through the competitive application process; and 2) tax-exempt bond financing.