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Learn more about the Delaware Mortgage Program

Build & Develop

Low Income Housing Tax Credit

The federal program behind most of the affordable rental housing built or preserved in Delaware. Housing Delaware awards credits each year through a competitive round.

Who appliesNonprofit and for-profit developers

On this page

1986 Year Congress created the LIHTC to spur affordable rental investment
60% Of area median income — the resident income cap for tax credit properties
$5M Set aside for the Area of Opportunity Land Bank program

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 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.


Housing Delaware receives an annual tax credit amount and awards credits annually through a competitive process. The awards are based on criteria outlined in Housing Delaware’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.

Read the 2025–2026 QAP LIHTC fact sheet
Map of Low Income Housing Tax Credit properties across Delaware
HDF and LIHTC properties across Delaware, from Wilmington to Sussex County.

Questions about this program?

Contact our Housing Program Specialist, Tara Rogers.

Eligible types of housing

Supports the acquisition, demolition, rehabilitation, new construction, and conversion of non-residential buildings and/or historic housing to multi-family housing. The development must comply with a number of requirements including the timeframe from the award to when the building is placed in service, tenant income restrictions, maximum rent levels, and percentage of low-income occupancy. All buildings financed with the LIHTC are subject to a land use covenant to enforce program compliance for the entirety of the affordability period.

How to apply

  1. Check requirementsMake sure the Applicant/Developer/Borrower meets all LIHTC requirements.
  2. Confirm resident eligibilityEnsure all resident or potential low-income resident qualifications are met.
  3. ApplyDownload and complete Housing Delaware’s LIHTC application package including all relevant exhibits and submit to DSHA by the applicable program year deadline.

Applicant qualifications

  • Nonprofit and for-profit developers may apply for the LIHTC program.
  • 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 Housing Delaware household/resident restrictions:

  • 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.
  • The owner of a qualified low-income building must rent at a minimum either 20% of the units to households with incomes of 50% or less of the area median income, or 40% of the units to households with incomes of 60% or less of the area median income.
  • A certain percentage of all units must be set aside to serve the needs of some of Delaware’s most vulnerable populations.

Tax credit policies, forms, and compliance documentation

Current program policies, tenant forms, and compliance manuals.

Compliance manuals & procedures

Tenant certification & verification forms

Qualified contract process

Draw, cost certification & audit

Income limits

Area of Opportunity Land Bank Program

Housing Delaware set aside $5,000,000 (subject to availability) in funding for the Area of Opportunity Land Bank program. The Area of Opportunity Land Bank Loan (“AO Land Bank”) program aims to help facilitate the creation of affordable rental housing in high-opportunity areas. Applications will be accepted on a rolling basis as long as funds are available.

Funding round documentation

Applications, exhibits, rankings, and awards by funding round. The current round is shown in full; earlier rounds are retained for reference.

2025 – 2026

Current round 53 documents

QAP and supplemental documentation

Application information

Rankings and awards

Earlier rounds

Archived — provided for reference.