LIHTC Market Gets Its Mojo Back Industry Savors Recovery But Nervous About 2011
By Caitlin Jones
1 min read
Tax Credit Advisor, February 2011: As 2011 begins, the rejuvenated low-income housing tax credit (LIHTC) equity market is in much better shape than the terrifying roller coaster market downturn of 2008-2009, when some industry players white-knuckled along just to survive.
Today, there is plenty of equity that is available in more places; more investors and active syndicators; and higher credit prices for developers, making more proposed projects pencil out.
But will this rosy environment continue?
In interviews and in comments on panels at an early January conference held by the National Council of State Housing Agencies, LIHTC industry officials were generally optimistic. But a host of factors will shape the market, including how far tax credit yields to investors continue to fall, actions by the new 112th Congress on deficit reduction and tax reform, and other areas.
