80/20 housing

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In the United States, 80/20 housing is multifamily housing program that meets federal guidelines for tax-exempt financing. 80/20 housing developments reserve 20 percent of units as affordable housing, only to be rented by low-income residents, leaving the remaining 80 percent of units to be rented at the typical market rate. Housing projects that meet these the 80/20 rule receive tax-exempt financing from State Housing Finance Agencies (HFAs). The 80/20 program uses the Low-Income Housing Tax Credit (LIHTC) along with bond sales to finance housing projects.

This program encourages the creation diversified income projects while also allowing granting developers funds at lower interest rates. It is a national priority to provide low- and moderate-income families affordable housing, and through the 80/20 program developers can provide high quality affordable housing, while still remaining fluid to changes in the market and financing structure.

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