Understanding the role of LIHTC in a capital stack
The IRS explains that qualifying residential low-income rental buildings may receive housing credits over a ten-year credit period, with Form 8609 issued for each building in a multiple-building project. In practice, a project-level conversation should distinguish the general role of credit equity from the particular allocation, compliance obligations, investor requirements, and legal documents applicable to a specific transaction.
Read IRS information on Form 8609 and housing credit allocation