Industry Rides LIHTC Market Changes

November 27, 2018                           By: Donna Kimura

Syndicators, investors discuss market changes, income averaging, costs.

Leading syndicators and investors discuss the low-income housing tax credit market at AHF Live: The Affordable Housing Developers Summit on Nov. 14 in Chicago.

Activity in the low-income housing tax credit (LIHTC) market gained momentum in the second half of 2018 after a sluggish start caused by the uncertainty created by the tax reform legislation.

“After people did figure out what their tax liability was they sort of came back into the market in a stronger way,” said Tony Bertoldi, executive vice president of CREA. However, there’s still a big separation between pricing expectations in terms of what investors are expecting and what developers need to make deals work, he said at AHF Live: The Affordable Housing Developers Summit in November.

Despite the market changes, a number of investors and syndicators reported being on pace to have their best year, including Bank of America Merrill Lynch, CREA, and WNC.................Read More