The Internal Revenue Service (IRS) Low Income Housing Tax Credit is available under Section 42 of the Internal Revenue Code. The LIHTC was created in 1986 to encourage a private/public investment to preserve and construct new affordable rental housing. Alone and in combination with tax exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation's history. DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The awards are based on criteria outlined in DSHA's Qualified Allocation Plan (QAP). The equity raised through the tax credit investment makes it possible for developers to attract the financing needed to create or restore low-income rental housing.


Eligible Types of Housing

Acquisition, demolition, rehabilitation, new construction, conversion of non-residential and/or historic housing to multi-family housing.
The low-income project must comply with a number of requirements including the timeframe from the award to when the building is placed in service, tenant income, maximum rent levels, and percentage of low-income occupancy. All buildings financed with the LIHTC are subject to a covenant in the land record to enforce compliance and must remain affordable and in compliance with other program restrictions for a minimum of 30 years.


How To Apply

  1. Make sure the Applicant/Developer/Borrower meets all LIHTC requirements.
  2. Ensure all resident or potential low-income resident qualifications are met.
  3. Download and complete DSHA's LIHTC application package including all relevant exhibits and submit to DSHA by the applicable program year deadline.

Documentation and Applications

Please download and review the documents below to learn more about the LIHTC program, review forms, and to determine if you qualify.


Applicant Qualifications

  1. Nonprofit and for-profit developers may apply for the LIHTC program.
  2. This program allows both corporate and private investors to receive a fair return on their investment in affordable housing. The program design allows individuals, as well as limited partnerships who own rental housing for low-income families, to utilize the credit.

Resident Qualifications

At minimum, all LIHTC projects must meet IRS and DSHA household/resident restrictions:

  1. Households whose incomes do not exceed 60% of the median income based on family size and county location are eligible to reside in tax credit properties. Rents are capped to remain affordable to families earning less than 60% of median income.
  2. The owner of a qualified low-income building must rent at a minimum either 20 percent of the units to households with incomes of 50 percent or less of the area median income or 40 percent of the units to households with incomes of 60 percent or less of the area median income.
  3. A certain percentage of all units must be set aside to serve the needs of some of Delaware's most vulnerable populations.

2023-2024 LIHTC Funding Round Documentation

2021-2022 LIHTC Funding Round Documentation

Previous Years' Funding Round Documentation
To see older funding round documentation and information, please visit the LIHTC Archival Funding Round Information Page.


Tax Credit Policies, Forms, and Compliance Documentation
Please download and review the documents below to learn more about tax credit policies, get forms, and understand compliance issues.

  1. DSHA Tax Credit Compliance Monitoring Manual (2011)
  2. Post - 15 Compliance Monitoring Procedures
  3. Qualified Contract Process
  4. DSHA Draw and Cost Certification Guide (2020 – 2022)
  5. DSHA Audit Guide – Revised 12.3.20

DSHA Program Contact Person
Do you have questions about this program? Would you like to suggest an improvement to this Web page? Please contact Tara Rogers, Housing Program Specialist, at 302.739.4263.