LIHTC Set Asides (Income Averaging | 20/50 | 40/60 ) and Area Median Income (AMI)

Section 42 Low Income Housing Tax Credit (LIHTC) properties are restricted by the “minimum set aside” and Area Median Income (AMI). LIHTC MINIMUM SET-ASIDE (20-50 vs. 40-60 vs. Income Averaging) LIHTC properties must dedicate a minimum percentage of their housing units to affordable housing. Since the creation of the LIHTC program, developers have been able to choose from one of two setasides: 20-50 Test: A minimum of 20% of the…