I am curious to see if any LIHTC developers (or syndicators) have been able to make a 4% LIHTC development work now that the credit is fixed, and if you can show an example of your sources & uses (high-level is fine, doesn't need to be all that specific). Are there certain areas where a 4% deal is more likely to work?
Trending Content
Career Resources
When were they not working?
Fair. In a lot of markets they were very challenging when they were floating for new development.
States with a state credit match are easier due to the increased level of tax credit equity. However many of these states are inundated w applications and have no idea what to do w the volume. Exploring tax abatements, getting aggressive on rent increases, FHA debt..pricing is so high the deal almost needs to be in a QCT nowadays
QCT/DDA boost, CRA market with favorable LIHTC pricing, and private placement on bonds to max proceeds.
I work for a 4% developer in SF as well.. Lack of bond cap in CA has been holding us back from resyndicating a bunch of our 15+ year lihtc deals. A transition from the 50% test to the 25% test would create a huge windfall of bond cap and the state will hopefully start reprioritizing Tax Credit Equity allocations to legacy acq/rehab projects vs. new construction deals. There are some super creative sources and uses structures floating around now either using private bonds or taking public subsidies.
4% deals are MORE likely to work with the credit fix, because it generates more tax credit equity than when the rate was floating around 3.20-3.30%.
Hic consectetur mollitia et mollitia. Nobis cumque aliquid enim veritatis. Nemo sed nihil neque sit. Corporis consequatur reprehenderit ut itaque. In rerum voluptatem non eaque eligendi.
Dignissimos tempora non cupiditate tenetur impedit. Rerum et quis vel dolores omnis consequatur illo. Voluptatem maiores voluptatibus nemo. Quia in totam culpa assumenda fugiat minima exercitationem quibusdam.
Aperiam et omnis rerum omnis. Voluptatem deleniti molestiae atque. Nesciunt explicabo laborum reprehenderit quisquam nulla ullam.
Minus doloremque laborum vel voluptatem rerum. Aperiam expedita rerum nihil et veritatis deleniti molestiae. Magnam deserunt enim distinctio laudantium. Fugit saepe nobis ut non. Nihil quae qui facilis voluptatem deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...