The LIHTC Equity Market: Good Times or Worrisome Depends on Your Perspective
By Caitlin Jones
1 min read
The LIHTC Equity Market: Good Times or Worrisome Depends on Your Perspective
By Caitlin Jones
0 min read
Tax Credit Advisor, August 2011: Many syndicators are nervously wondering whether they will be able to retain so-called economic or “non-CRA” investors in their corporate low-income housing tax credit funds going forward. given the continuing decline in tax credit yields to investors.
One syndicator is trying to keep them in the fold by a different structure in its latest national multi-investor fund. The Richman Group’s new fund, expected to close around year-end at $250-$300 million, will offer a projected after-tax yield of 5.4% to investors (i.e. banks) that can get consideration for their fund investment under the Community Reinvestment Act (CRA), and 6.0% to investors that aren’t subject to CRA (e.g., insurance companies). CRA investors will pay a higher price for their investment and get the lower yield; non-CRA investors will pay less and get the higher yield. Both classes will invest in the same pool of properties located in both CRA and non-CRA markets.
NH&RA Presenting Sponsor
