A resident of Los Angeles, California, Aaron Marzwell is a real estate developer and leader with extensive experience in residential property investment and development. Aaron Marzwell serves as CEO of APPA Real Estate, which provides affordable housing to low and middle-income workers.
The Low-Income Housing Tax Credit (LIHTC) is an incentive used by state governments to promote the development of affordable housing projects. Affordable housing developers must provide proof that their proposed projects meet certain eligibility requirements. These requirements include allocation of 20 percent of housing units to tenants who earn less than 50 percent of the area median income (AMI), at least 40 percent of the units to tenants who earn up to 60 percent of AMI, and all units to tenants with income less than 80 percent of AMI. These proposals are vetted by state governments.
When a developer's project is LIHCT-approved, the developer is awarded credits that can be sold to private investors in exchange for financial backing. When a private investor obtains an LIHTC, they can reduce their own tax liability after their housing project is put to use, meaning when tenants occupy the property. LIHTC-approved properties are typically townhouses, apartment buildings, and duplexes.