How to Win Millions in Tax Credits for Affordable Housing Development with Dyamone White

Why this conversation matters

Most new developers believe that winning Low-Income Housing Tax Credits (LIHTC) is out of reach unless you have decades of experience. Dyamone White proves otherwise. As a housing finance consultant from Mississippi, Dyamone is tackling her first LIHTC deal while also advocating for more opportunities for minority and first-time developers. Her journey shows that affordable housing development is not reserved for a select few—it is a pathway that new leaders can step into with the right strategy, persistence, and partnerships.

On this episode of the Affordable Housing & Real Estate Investing Podcast, hosted by Kent Fai He, Dyamone breaks down exactly how the scoring system works, how to maximize points in your state’s Qualified Allocation Plan (QAP), and why the lack of affordable housing is less about land and more about labor and leadership.

What are LIHTC tax credits and why do they matter?

The Low-Income Housing Tax Credit program, created in the 1980s, is the federal government’s primary tool for incentivizing affordable housing development. Developers apply through their state agencies, and if awarded, can sell those credits to investors or corporations (often through syndicators) to raise equity for their projects. This equity fills the gap that traditional debt financing can’t cover.

In short: LIHTC helps make affordable housing financially viable. Without it, most projects would never get off the ground.

How do developers earn “points” to win LIHTC awards?

Each state scores LIHTC applications using a point system outlined in its QAP. Dyamone explains that three main factors determine your competitiveness:

• Type of project: Historic rehabilitations often score higher than new construction, which is costly and riskier for new developers.
  
  

• Experience: States award points for past successful projects, but even one well-managed project can qualify you for future credits.
  
  

• Target population: Projects serving seniors, veterans, disabled residents, or other critical groups often earn additional points.
  
  

Interestingly, Dyamone shared that in Mississippi, projects near liquor stores or strip clubs lose points, highlighting how local culture influences QAP rules.

How do syndicators, banks, and developers work together?

Syndicators act as brokers between developers and large investors like banks, Walmart, or Costco. They purchase the tax credits from developers, package them, and sell them to investors who need tax relief and Community Reinvestment Act (CRA) credits.

Dyamone stresses that syndicators evaluate a developer’s balance sheet and track record closely. That’s why experience points matter—not only for the state scoring system but also for attracting strong syndication partners.

What strategies can first-time LIHTC developers use?

Dyamone shared a blueprint for breaking into the field:

1. Study your state’s QAP: It lists exactly how points are awarded.
   
   

2. Look up past winners: Every year’s LIHTC allocations are public. Reach out to experienced developers and explore joint ventures.
   
   

3. Leverage your background: Even if you’re not a builder, your skills in finance, project management, or community advocacy can bring value to a JV.
   
   

4. Focus on critical populations: Targeting seniors, veterans, or disabled tenants can help your project score higher.
   
   

5. Be persistent: Dyamone emphasized that she’s been studying since 2018—success requires patience and commitment.
   
   

Key Insights from Dyamone White

• Winning LIHTC isn’t about being wealthy, it’s about being resourceful and learning the system.
  
  

• Historic rehabilitation projects can provide the most competitive scoring opportunities.
  
  

• One well-executed project can open the door to future deals—experience points are about quality, not just quantity.
  
  

• Affordable housing supply isn’t limited by land, it’s limited by labor and the number of developers stepping up.
  
  

• Minority and first-time developers are critically needed in states where the current developer base is aging.
  
  

Best Quotes

“If you’ve done one project well, that’s enough to get you in the door. Don’t let lack of experience stop you.” – Dyamone White

“You have to have a compelling story. That’s how you win support, even if your project isn’t in the designated map area.” – Dyamone White

“The biggest barrier isn’t land, it’s manpower. We simply don’t have enough builders and developers.” – Dyamone White

“I always tell people, go read your state’s Qualified Allocation Plan. That’s your playbook for how to win.” – Dyamone White

Common Questions About LIHTC Development

What is the difference between 9% and 4% LIHTC credits?
The 9% credits are highly competitive and cover a larger share of project costs, while 4% credits are non-competitive and available year-round but require stronger financing relationships.

Do I need prior experience to win tax credits?
Not necessarily. States often award points for even one successful project. Partnering with an experienced developer through a joint venture can also help.

How do I know if my project qualifies for LIHTC?
Check your state’s QAP and online maps to see if your site location is eligible. Some states even deduct points if your project is near certain facilities like liquor stores or strip clubs.

Why are syndicators important?
They serve as the middlemen between developers and investors, ensuring compliance and helping sell tax credits at the best value.

Why is there still a shortage of affordable housing?
Labor shortages and a lack of new developers are the biggest barriers. Dyamone emphasized that the opportunity is wide open for those willing to step in.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Each episode brings insider knowledge from industry leaders, helping investors, developers, and advocates understand how to make impact-driven projects successful.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.