Contact Information Michelle Den Bleyker
Direct Line: (505) 767-2249
Toll free in NM: (800) 444-6880
The Housing Tax Credit Program
(HTC) provides federal income tax credits to individuals or organizations
that develop affordable housing through either new construction or acquisition
and rehabilitation. The tax credits provide a dollar for dollar reduction
in the developer's tax liability for a ten year period. Tax credits
can also be used by nonprofit or public developers to attract investment
to an affordable housing project by syndicating, or selling, the tax
credit to investors.
In order to receive tax credits a developer must set-aside
a number of units for occupancy by households below 60% of area median
income. The rents charged to these households may not exceed 30% of
the median income. These units must remain affordable for a minimum
of 30 years.
This program is a resource provided by the Internal
Revenue Service. In addition to tax credits, the financing "gap"
for certain HTC projects may be filled with a below market rate HOME
loan. Tax credits and rental HOME loans are awarded annually through
a competitive application process according to the state's Qualified
Allocation Plan.
