Low-Income Housing Tax Credit strategy for PHAs and their partners: QAPs, 9% and 4% deals, and compliance.
LIHTC
2026 is the first allocation year under the permanent Low-Income Housing Tax Credit expansion in the One Big Beautiful Bill Act (P.L. 119-21). State credit ceilings for 9% credits rose 12%, and the private activity bond test for 4% deals dropped from 50% to 25% of aggregate
PHA Partnerships
Two things became true at the same time this year, and most housing authorities have only noticed one of them. The first is that development capacity got cheaper. Starting in 2026, the One Big Beautiful Bill Act permanently increased state 9% credit allocations by 12% and permanently cut the tax-