the federal Low-income Housing Tax Credit (LIHTC) the program has financed roughly 90 percent of affordable homes in the U.S., including more than 45,000 in
Colorado. The key to this success is LIHTC’s ability to attract private investment to help meet affordable housing needs. Density bonuses work basically like this. Communities allow developers to build more homes as part of a single project in return for a requirement to create a percentage of those homes as affordable. In theory, the economy of the building at a bigger scale helps underwrite the additional affordable homes.