HUD 221(d)(4) Loan-to-cost Ratio

What is the Low Income Housing Tax Credit (LIHTC) Program?

What is the Low Income Housing Tax Credit (LIHTC) Program?

The Low Income Housing Tax Credit (LIHTC) program is a tax incentive designed to increase low-income housing availability. This tax credit can be claimed by developer-owners of LIHTC properties on their federal income taxes for up to ten years after the property’s completion and leasing up. The tax credit is available as long as the property adheres to LIHTC requirements. 

What is Loan-to-Cost Ratio (LTC)?

What is Loan-to-Cost Ratio (LTC)?

Loan-to-cost ratio, or LTC, compares a project’s financing to the cost of construction. Along with loan-to-value ratio, or LTV, LTC is one of the most important metrics that lenders look at when deciding whether to approve a HUD multifamily construction loan, like the HUD 221(d)(4) loan.