low-income housing limited partnership

Definition

A limited partnership established to invest in housing complexes for low-to-medium income tenants. These types of partnerships offer special tax credits through Form 8586. Tax credits can amount to 130-150% of the invested amount over a 10 year period. Cash inflows generated from rent can pay for themselves over long periods of time, typically 15 years. However, the amount of rent charged cannot exceed the amount specified by the statute of limitations.
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lowering Low-Income Housing Tax Credit (LIHTC)