State Low-Income Housing Tax Credit (SLIHTC)

The State Low-Income Housing Tax Credit (SLIHTC) is a new initiative that encourages private investment in the development and preservation of affordable housing across Rhode Island. By helping close critical financing gaps, the program supports the creation of affordable homes for residents with low to moderate incomes, expands the state’s housing supply, supports economic growth, and ensures more residents have access to safe, stable homes.

The program is designed to work alongside the federal Low-Income Housing Tax Credit (LIHTC), including both 4% and 9% credits. State credits are awarded to eligible developments to strengthen project financing and move more proposals from concept to construction.

SLIHTC awards are distributed through a competitive Request for Proposals (RFP) process. Selected projects receive state tax credits in equal installments over a five-year period after the development is placed in service. These credits may be sold to investors to generate upfront capital or redeemed directly by the State at 90 percent of their value, providing flexibility for developers to structure financing in a way that best supports project success.

Additional details, including program requirements and funding terms, are available in the program regulations on the Rhode Island Secretary of State’s website. at https://rules.sos.ri.gov/regulations/Part/310-10-10-1 .