The West Virginia Low-Income Housing Tax Credit (LIHTC) Program, administered by the West Virginia Housing Development Fund (WVHDF), is a critical initiative in addressing the state’s housing affordability challenges. The program uses federal tax credits to encourage private developers to develop and preserve low-income housing in West Virginia, providing safe and affordable rental homes for low- and moderate-income households.
This is essential to West Virginia’s work in countering housing shortages, revitalizing communities, and spurring economic growth. Whether in rural counties or urban centers such as Charleston and Huntington, the LIHTC program has contributed significantly to equity and stability in housing throughout the state.
How Does the LIHTC Program in West Virginia Work
The West Virginia LIHTC program provides tax credits to developers, reducing their tax liability in exchange for building or rehabilitating affordable housing units. These credits help offset construction costs, making it financially feasible for developers to prioritize housing for low-income households.
Program Goals
- Expand affordable housing in West Virginia, particularly in underserved regions.
- Promote energy-efficient building designs to encourage sustainable housing practices.
- Long-term affordability will be achieved when properties remain income-restricted for at least 30 years.
- Housing shortages in urban and rural areas will be addressed by providing housing opportunities for families, seniors, and persons with disabilities.
Key Features
- Two main tax credit types are provided—competitive and non-competitive—9% and 4%, respectively
- Mixed-use and mixed-income developments, including low-income and market-rate units.
- Support projects near public transportation, schools, and job centers by enhancing access for the local population.
West Virginia LIHTC Program Monitoring and Compliance
WVHDF requires monitoring and compliance, including LIHTC-financed projects, to maintain their affordability and quality performance:
- Affordability Program Period: Properties shall retain affordability for at least 30 years, thus offering low-income residents a permanent place to live.
- Annual Tenant Income Certifications: The developer must certify that the tenants meet the eligibility criteria each year so that properties continue to serve the population intended for them.
- On-Site Property Inspections: Regular inspections verify compliance with safety, accessibility, and maintenance standards, ensuring high-quality housing.
- Financial Accountability: Developers must provide financial reports to confirm the appropriate use of tax credits and project funds.
- Support for Property Managers: Training and resources are offered to ensure proper management of LIHTC properties, fostering long-term success.
West Virginia Cities and Areas Benefiting from LIHTC
The West Virginia LIHTC program has made a measurable impact throughout the state by addressing the housing needs of urban, suburban, and rural communities.
Below are two key cities where the program has significantly enhanced affordable housing:
LIHTC in Charleston, WV
As the state capital, Charleston has been a core focus for LIHTC-funded projects in expanding low-income housing options. Such developments respond to the ever-increasing demand for affordable housing in a city experiencing rising living costs.
Washington Greene Apartments
- Newly built LIHTC-funded apartments in Kanawha County with 32 affordable two-bedroom units.
- Focus on low-income families and working-class individuals to address the severe housing shortages.
Liberty Village
- Mixed-use adaptive reuse/new construction project with 48 affordable units.
- Provides elderly and low-income family housing in a mix of one- and two-bedroom apartments.
The Impact
- LIHTC developments in Charleston stabilize the community, offering quality housing close to necessary services and employment opportunities.
- Projects like these have revitalized neighborhoods and encouraged further investment in the city’s housing market.
LIHTC in Huntington, WV
Huntington, WV, is another city greatly benefiting from the LIHTC program. As of December 29, 2024, the town boasts 32 affordable housing complexes, providing much-needed housing options for low-income residents.
Barnett Commons
- A 32-unit LIHTC project offering a mix of two- and three-bedroom apartments.
- Designed for elderly residents and families, this development provides modern, safe, and energy-efficient homes.
Imperial Lofts
- A newly built project consisting of 36 affordable units. This project is a mix of one-, two-, and three-bedroom apartments.
- It is situated in Cabell County. The development fulfills the increasing need for affordable housing.
Community Support
- Huntington has supported 786 Section 8 apartments, 171 public housing buildings, and 371 approved low-income housing units.
- The city has shown commitment to housing equity.
The Impact
The LIHTC projects in Huntington ensure that families, seniors, and people with disabilities have enough safe homes at a low cost in the community, thus making it more stable.
West Virginia LIHTC’s Impact on Communities
LIHTC has significantly impacted the housing supply and quality across West Virginia.
- Affordable Development: Supported thousands of units to be created and rehabilitated, such as income-based housing in Huntington, WV, and low-income apartments in Charleston, WV.
- Economic Growth: Generated jobs in construction, property management, and local businesses boosted the state economy.
- Neighborhood Revitalization: Recreated healthy communities by replacing worn-out properties with good quality affordable housing.
- Diversity in Housing: Provided family units, senior housing, and accessible homes for people with disabilities, ensuring all residents live in safe housing.
- Stability for Low-Income Families: Ended housing insecurity for vulnerable populations, creating the foundation to hopefully enhance the quality of life.
This Low-Income Housing Tax Credit program is a vital tool for helping the state overcome housing affordability challenges. From urban centers such as Charleston and Huntington, WV, to rural communities, the program enables access to affordable housing to improve economic growth and community development in West Virginia.
Given its focus on sustainability, community revitalization, and long-term affordability, LIHTC continues strengthening and making more inclusive communities in West Virginia.
