Funding Sources FUNDING SOURCES: TAX ABATEMENTS/CREDITS AND FUNDS Source Potential Description Partners Low-Income Maryland LIHTC Program is a federal Housing Tax Department of program that provides a Credit (LIHTC) Housing and dollar-for-dollar tax credit Community to support the acquisition, Development, rehabilitation, or new Maryland construction of affordable Department of rental housing. In Prince Transportation George's County, LIHTC distributes federal income tax credits to developers through Maryland DHCD. LIHTC allocations can be leveraged by developers to access other sources of funding including the Multifamily Bond Program and Rental Housing Works, both of which provide financial support LIHTC awardees in exchange for the creation of additional affordability, employment opportunities, and other community benefits.
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Applicability to TLC Because of certain property acquisition stipulations that limit the usage of LIHTC based on ownership changes and renovation (10-year rule), this tax credit will probably be most effectively used to subsidize new construction (rather than the acquisition or rehabilitation of existing apartments). Langley Park's current designation as a Sustainable Community makes TLC eligible for certain state programs (see Community Legacy Program, Neighborhood BusinessWorks Program) as well as bonus weighting under LIHTC. Should TLC be designated as a TOD site through MDOT's TOD Program, affordable housing projects within designated boundaries will receive additional priority for LIHTC in addition to other financing tools. The possibility of leveraging LIHTC into additional sources of funding has been a key to success in precedent TODs, and the County may consider engaging with state agencies to make LIHTC more accessible to potential developers.
Prince George’s County Planning Department
