4% Low-Income Housing Tax Credit Program (4% LIHTC – HFA Administered)

The federal 4% Low-Income Housing Tax Credit ("LIHTC") Program is frequently used in conjunction with New York State Housing Finance Agency ("HFA") tax-exempt bond financing for qualified residential rental projects. Projects requesting HFA tax-exempt bonds can access 4% LIHTC through the HFA Financing Application process.

HFA may also provide 4% LIHTC to projects financed by tax-exempt private activity bonds issued by other agencies in New York State, such as Industrial Development Agencies and Public Housing Authorities. Projects seeking only 4% LIHTC without any other HCR financing must utilize the 4% Stand-Alone LIHTC Term Sheet and 4% LIHTC Stand-Alone application linked below.

HFA may also allocate 9% LIHTC from the State’s annual allocation authority to projects which are not subject to tax-exempt bond financing if designated to do so by the New York State Division of Housing and Community Renewal (“DHCR”), the primary 9% LIHTC allocation agency in New York State.

HFA retains a Qualified Allocation Plan ("QAP") which sets forth many of the parameters and guidelines for the issuance by HFA of both 4% and 9% LIHTC. Additional Agency information concerning LIHTC issuance is set forth in the pertinent program term sheet(s) and other Agency guidance.

Mandatory Cost Certification Forms and Opinion Letters Required for Issuance of 4% LIHTC Forms 8609 and SLIHC DTF Form 625

All worksheets are protected without any password.  If protection is removed from any sheet, additional rows or columns can be added to meet any project’s specific needs.  In the multiple Buildings templates, worksheets can also be copied where needed to add buildings.

4% LIHTC/SLIHC projects:

• New construction
  • Single Building
  • Multiple Building
• Acquisition rehab
  • Single Building
  • Multiple Building

Opinion Letters are based on the National Council of State Housing Agencies Model Cost Certification Opinion Letter.

Cost Certification Opinion Letter for 4% LIHTC Projects

Allocation of 4% Stand-alone LIHTC to Projects Financed by Bonds from an Issuer Other than NYS HFA

As noted above, HFA is authorized to provide 4% Stand-alone LIHTC to projects financed by private activity tax-exempt bonds issued by other  agencies, such as Industrial Development Agencies and Public Housing Authorities, which require only the issuance of 4% LIHTC from HFA as the sole source of Agency financing. 

HFA’s issuance of LIHTC for stand-alone projects is made in accordance with the Agency's QAP, the 4% Stand-alone LIHTC Term Sheet, and other relevant Agency guidance.  Any project receiving 4% LIHTC from the Agency (including stand-alone projects) will be subject to the Agency’s compliance monitoring, as described in the QAP and further detailed in HFA’s Regulatory Agreement executed with the project owner.

HFA maintains an application process for 4% Stand-alone LIHTC, which entails the use of the Agency’s standard 4% Stand-alone LIHTC Application. Applications for 4% Stand-alone LIHTC may be submitted throughout the year, unless otherwise set forth by the Agency on HCR’s website. The Agency may limit the submission of 4% Stand-alone LIHTC applications, without prior notice, at its discretion.

Pursuant to §2188.4(i)(3) and §2188.7(d)(3) of the QAP, and as established in the 4% Stand-alone LIHTC term sheet, HFA may charge reasonable application, allocation and monitoring fees for 4% Stand-alone LIHTC projects which request 4% LIHTC from HFA.

The Agency currently requires payment of an application fee of $3,000, a credit issuance fee of eight percent (8%) of the first-year credit   amount allowed to the project at issuance of IRS Form(s) 8609 and an annual monitoring fee set at one percent (1%) of the maximum restricted rents for the low-income units with a minimum annual monitoring fee of $10,000.

These fees are subject to revision by the Agency without prior notice and will be adjusted, if necessary, to reflect the cost to the Agency of the application, credit issuance and monitoring review processes.

Applicants must utilize the following Agency guidance and application forms in preparation of a 4% Stand-alone LIHTC Application: 

4% Stand-alone LIHTC Term Sheet 

HFA Qualified Allocation Plan

4% Stand-alone LIHTC Application (effective November 2024)

HFA Underwriting Workbook

For assistance determining eligibility for HCR’s Multifamily Development Programs and general inquiries about the application process, please contact the Development Director assigned to the county in which the proposed project is located.