Tax-Credit and Income-Based Apartments
Of all the low income housing programs, tax credit apartment, or income based apartments are the most hassle free.
You will not find long waiting lists, and there are no lengthy application rituals like the ones associated with section 8 housing and public housing.
Affordable housing is the goal of the program, and it offers decent, and even above average low income housing options with below market monthly rental rates.
If you have a job, your credit is fairly decent, and you are looking for a safe and affordable place to live, tax credit apartments should be the first type of affordable housing program you pursue.
How Does The Program Work?
In this income-based apartment program, a contractor is given federal money to to build apartment communities.
In exchange for the federal money, the contractor has to agree to build and lease a certain number of units to low income families at cheaper rental rates than the market rates (normal high rent costs).
Tax credit apartments normally feature amenities aimed at helping low income families. They may provide after-school kids programs and some apartments host the Summer Lunch Program or Summer Food Program for the kids in their community.
In the Low Income Housing Tax Credit Program, or income based apartments, there are income limits that allow an applicant to pay lower rents.
Just like many other low income assistance programs - the maximum and minimum income guidelines are set by the federal government, but each region operates within those guidelines according to income averages within their area.
In other words, you have to contact each property to find out if your income will allow you to receive tax credit rental rates in their community. The property managers will look at:
- Your Income
- Your Household Size
- Your Rental History
After you pass the income and household size hurdles, the community will pull your credit to determine if you will be a good tenant - just like any other apartment complex.
If you have a bad rental history, or an eviction on tour credit report, you probably will not qualify. Click the following link to learn how to get an apartment with an eviction on your credit.
Since the program is a low income housing program, the lower your income, the more likely it will be that you can participate - within limits.
If you have very low income, you may not meet minimum guidelines and one of the other housing assistance programs may be a better fit for you.
Most of the apartments in this program are newly constructed communities, so there are generally no gripes about the apartments themselves.
The gripes have to do with the communities. Some - not all - of the apartment complexes are built in neighborhoods which were decaying, but most of them are trying to clean up their act.
Also, some of your neighbors may be less than "charming." No, these are not the projects, but you may have to deal with people who are not used to having nice things - you know how that goes...
The way to get around these issues is to understand that you live inside your own apartment, and try not to worry about what other people are doing around you.
If any situation gets out of hand, approach the property management and tell them what is going on - if they do not respond, don't renew your lease and head off to a different complex.
If you are more assertive and proactive, you can pitch the idea of starting a "neighborhood beautification" or "neighborhood watch" program in your community.
Some of the positive aspects of tax credit apartments include the following:
- Decent & Upscale
- Affordable Rent
- Activities & Programs for Kids
- No Waiting Lists
Many of the low income tax credit apartment complexes are in nice neighborhoods, intermingled with regular upscale apartments, and you would never be able to seeany difference between.
The icing on the cake is fact that there are no waiting lists, there are usually activities for kids, and best of all - the affordable rent.
In almost every case, the good outweighs the bad here. If you have to live in any form of low income housing until you get your finances together, tax credit apartments are not a bad deal
How do I Apply?
Click the link to find a listing of low income tax credit apartments.
The list includes many of the older complexes that were grandfathered in to the program - you have to take your time and do a little bit of "cherry picking" to find the really nice ones, and the newer ones... but sometimes you just have to do whatever you have to in order to get ahead.
Good Luck to you my friend...
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.