Glossary

I - L

Loan to Value Ratio - The ratio of the debt on a property to its appraised value.

Low Income - A term used to describe household income that does not exceed 80% of the area median income.

Low Income Housing Tax Credit (LIHTC) - A provision of section 42 of the Internal Revenue Code that offers property owners and investors a credit or reduction in their tax liability, each year for 10 years. LIHTCs are based on the cost of development and the number of qualified low-income units in a newly constructed or rehabilitated development. The owners must offer quality units to very-low or low-income tenants at fixed, below-market-rate rents that are set at 30% of the applicable Area Median Income. Tenants must meet income eligibility requirements to qualify for residency.