Last month, Senator Al Franken (D-MN) introduced S. 3494, legislation that will make formerly homeless students eligible for low-income housing tax credit (LIHTC) financed housing.  This bill marks an amendment to the IRS Code of 1986, which was established to ensure that tax credit housing would not be used to finance the development of college dormitories.  Currently, students are not permitted to be the leaseholder of a LIHTC unit; exceptions are currently made for young adults aging out of foster care and those enrolled in job-training programs. 

If passed, S.3494 will ensure full-time students who have been homeless within the past five years are eligible for LIHTC housing, regardless of age.

With more than 15 colleges and universities located within its five-county service area, the SC Community Loan Fund supports student housing and LIHTC projects.  CLF participates in both construction and permanent LIHTC loans and will partner with the Community Investment Corporation of the Carolinas (CICCAR) in financing four permanent LIHTC projects around the state (Columbia, Bennettsville, Rock Hill, and Myrtle Beach).  With the passing of S.3494, these four housing projects will provide affordable housing options to qualifying full-time students attending nearby educational institutions. 

The LIHTC program is a Federal subsidy used to finance the production of affordable rental housing for low-income households.  For more information, visit HUD’s website.

To determine eligibility for South Carolina’s LIHTC program, please view the 2012 Income & Rent Limits.