(RECAP: In 1986, the U.S. federal government made the LIHTC program as an indirect subsidy to encourage private investment in affordable housing. Since then, LIHTC properties have provided numerous opportunities for investors as they can often outperform traditional multifamily assets when it comes to investment returns. They maintain consistently high levels of occupancy and a foreclosure rate of less than 1.0 percent. Participation often allows banks to meet Community Reinvestment Act requirements. The LIHTC market accounts for about 90 percent of all affordable housing built in the U.S. Demand for LIHTC funding from investors remains strong as rising housing costs prevent many families from either buying a home or affording market-rate rentals. The affordable housing sector should remain profitable for both developers and investors for years to come.)
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