LIHTC Remarkable Comeback

Who knew in the depths of the Great Recession we would be seeing news like this?  Yields of $.89-.93 make me (and lots of affordable housing developers) happy, happy, happy.

http://www.housingfinance.com/affordable-housing/investor-demand-fuels-lihtc-market_o.aspx?dfpzone=h

I remember deals in 2008 and 2009 where there was not an investor to be found and now some syndicators are turning Low Income Housing Tax Credit investors away. One brown bag lunch with MHIC stands out in my mind; participants left the meeting wondering if the Low Income Housing Tax Credit Program would survive and it felt like the tax credit market was on the ropes, along with our projects.  It is wonderful to see the market robust again.

For LIHTC investors interested in other types of housing tax credits, you may want to consider the Massachusetts Community Investment Tax Credit.  It has low cost of entry, offers a 50% tax credit (refundable) and is entirely deductible on your federal tax return.