Articles Archives

With Interest Rates Rising, Syndicators Stop Lowering Fund Yields, But When Will Equity Prices Stabilize?

& 7 min read

Tax Credit Advisor May, 2006: With long-term interest rates on the rise, the tax-credit fund marketplace has reached a clear turning point – syndicators have stopped reducing fund yields. But when tax credit equity prices will also come to rest is still an open question, syndicators say.

Expected Investment in HRTC Properties Drops to $3.13 billion in FY2005, NPS Reports

& 4 min read

Tax Credit Advisor May, 2006: Anticipated private-sector investment in historic tax credit properties was $3.13 billion in FY2005, down 19 percent from the record pace of 2004, according to an annual report recently published by the National Park Service.

NAHB Says Multifamily Tax Revenues Exceed Costs to Local Governments

& 2 min read

Tax Credit Advisor May, 2006: The economic benefit of multifamily housing to local governments far outpaces its costs, according to a recent study from the National Association of Home Builders.

Green Building Can Produce Profits, Says Developers’ Panel

& 6 min read

Tax Credit Advisor May, 2006: Green building can generate a profit for developers who plan their projects carefully, according to a panel of executives from firms specializing in environmentally friendly properties.

Hedged with Derivatives, Variable-Rate Debt Gains Acceptance, Bond Panel Says

& 5 min read

Tax Credit Advisor May, 2006: After years of skepticism from tax-credit investors, syndicators, and developers, short-term variable-rate debt, also known as “floaters,” is finally gaining acceptance. One of the main reasons for this, according to a panel of bond experts, is the growing use of derivatives to hedge floaters’ interest rate risk.

CDFI Fund Director Gives Details On NMTC Investments

& 4 min read

Tax Credit Advisor April, 2006: CDFI Fund Director Art Garcia has provided the first official breakdown of investments made as a result of New Markets Tax Credit (NMTC) allocations. Speaking before the National Housing & Rehabilitation Association’s (NH&RA) New Markets Tax Credit Symposium held last month in Miami Beach, Fla., he also provided data on how quickly these investments have been put to work.

NMHC Economist Sees Favorable Long-term Trends Energizing Multifamily Rentals in 2006

& 4 min read

Tax Credit Advisor April, 2006: Buoyed by sound fundamentals, apartment rental housing is poised for a strong year in 2006, according to Mark Obrinsky, chief economist for the National Multi Housing Council.

State Housing Finance Agencies Change LIHTC Allocations Strategies

& 7 min read

Tax Credit Advisor April, 2006: State housing finance agency officials from New York, Florida, Illinois and South Carolina recently gathered to discuss how their HFAs have revised the allocation of federal housing tax credits in an effort to better manage strong developer demand for these subsidies.

Rental Unit Losses Surpass LIHTC Additions, Deepen Affordability Crisis, Harvard Study Reports

& 5 min read

Tax Credit Advisor April, 2006: Harvard University’s Joint Center for Housing Studies has released an unusually detailed analysis of the nation’s shrinking inventory of affordable rental housing.

Due Diligence in Historic Adaptive-Reuse Saves Developers Time and Money

& 6 min read

Tax Credit Advisor April, 2006: Performing careful due diligence and budgeting with historic adaptive-reuse projects can save considerable time and money, according to Tom Capp, executive vice president at Madison, Wisc.-based Gorman & Co.

CASE STUDY Hedging Variable-Rate Loan Over Tax Credit Period Challenges Brooklyn Project

& 9 min read

Tax Credit Advisor April, 2006: Tax-credit developers are realizing that using variable-rate debt can yield big savings, particularly during the construction period. But they are also learning that these loans demand very careful handling when extended over the entire compliance period.

RHS Permits Section 538 Loans To Refinance Section 515 Property; Will Help Rural Preservation Effort

& 5 min read

Tax Credit Advisor March, 2006: In a significant program change that could help preserve many aging rural affordable apartments, the Rural Housing Service (RHS) is permitting owners who have funded properties with Section 515 loans to rehabilitate those properties using Section 538 loans.

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