Anyone have info on what comp looks like working at a larger LIHTC developer as a project manager/development manager? At what point do you get ownership in deals?
I work at a syndicator and interested in making the switch to the development side. I feel like there may be more upside in syndications if your not one of the top 2-3 guys at the developer, but I could be wrong.
Any insight is helpful. Thanks.
Based on the most helpful WSO content, compensation for LIHTC developers often revolves around developer fees, management fees, and other assorted fees. For a project manager or development manager at a larger LIHTC developer, the comp structure can vary significantly depending on the company and market.
Ownership in deals, such as carried interest or equity, is less common in LIHTC development compared to market-rate developments. This is because LIHTC deals are structured differently, with most of the upside coming from developer fees rather than long-term cash flow or residual value. However, some developers may offer equity or a share of the developer fee as part of the compensation package, especially for senior roles or those directly involved in deal execution.
If you're considering switching from a syndicator to the development side, keep in mind that LIHTC developers typically focus on earning income through developer fees and minimizing equity contributions. While syndication might offer more upside in terms of long-term cash flow and residuals, development roles can provide stability and consistent income through fees.
For more detailed insights, you might want to explore threads discussing LIHTC developer fees and compensation structures.
Sources: Q&A: Affordable Housing Acquisitions, How do LIHTC developers make money?, Compensation Structure at the mid-management level in Corporate Development / Strategy / Finance, LIHTC during the next recession, Calling all people in Development
Bump
Also in the LIHTC world and would love to hear from development people.
Stay in syndication. Development is too inconsistent right now. Deals are still being done but timelines are taking longer to close. Fees being retained by each development are lower because cost overruns. If you went one big developers like Dominium the starting pay is not worth it. Have to start off as analyst and starting pay is 75k.
Interesting. Seems low. I assume that’s why every MN LIHTC developer was previously at Dominium lol.
Any idea what a Senior associate/VP at Dominium or equivalent is pulling in?
Last job posting us saw, was like 130 base. I assume maybe 160 all in after bonuses. They are known to be cheap though. Because they know they could churn and burn folks because I they know folks need the opportunity to learn. to be honest I really don’t see it getting better anytime soon. As you already know, Trump‘s tax cuts aren’t gonna make it more favorable for tax credit deals. As tax obligations will go down. So I would assume a huge uptick and pay anytime soon. Stay in syndication. Longer road to higher pay, but more predictable pay on the way there.
I actually strongly disagree with this take.
First off, it's debatable whether Mr Trump has the ability to get another tax cut through. His majority is razor thin and as we saw with this modern clown show iteration of the Republican Party, there isn't a lot of ability to whip members who care about fiscal responsibility. I know, I know, you'll say that that was always a baldfaced lie and Republicans don't care about debt or deficits as long as they're the ones spending, and that's mostly true, but you do get the odd duck who actually has principles, and when your majority is what? 5 seats? That's a tough nut to crack, preventing no more than 3 defections.
I'd argue you're just as likely to see a big increase in LIHTC, as we might get some meaningful change to the 50% test which would drastically boost production. This is a bipartisan issue, and one that is extremely close to the hearts of most constituents, so I think you'll see real pressure on GOP lawmakers to actually address the issue now that they've managed to prevent Democrats from taking credit for it. Simply put, this is not another boogeyman that most Republicans can campaign on, safe in the knowledge that most of their constituents will never really have to deal with the problem. Housing prices are something that impacts people directly every day, and as we saw with this extremely modest bout of inflation, if the electorate thinks you are responsible for costing them a single penny, they'll punish you harshly.
Also, maybe this is a difference in experience, but pay is not tied to deal volume in development and your arguments against it are kind of contradictory. If deals take a long time, then volume isn't as big an issue in the short term. And you get paid for your expertise in this business, not in the number of deals you've closed. That sounds more like a syndicator talking. Which brings up the other bit of obvious hypocrisy - if there is less deal volume for developers, that means less deal volume for syndicators. Why is one a negative and the other isn't?
Every MN LIHTC developer was at Dominium because they're one of the biggest and most active affordable housing developers in the country. People don't go there because they think they'll make a fortune as a 24 year old analyst. They go because they'll get experience and then lateral to smaller, more regionally focused shops and get paid a lot more to be a senior person. Or they'll start their own firm and do the same. Or they'll stay at Dominium at get paid more. You know, kind of like every job that ever existed.
I would check Glassdoor for salary information
Depends on where you are. I know LIHTC developers in NYC who start at about $100k all in, are probably in the 150-200 range after 3 years, and end up in the $300-400,000 range once they're more senior (10+). And whatever carry gets dished out.
That's probably on the high end, with salaries being lower in LCOL cities, but not unusual here.
A few years back i was quoted starting analyst pay was 75k base and 25k bonus. Honestly not bad comp for a first year analyst if you can live in DTX or Phoenix.
Thanks for the data point. I got quoted $125k and ~$50k bonus target to be a development manager at a top 50 LIHTC Developer. I have 7 years of experience on syndications side.
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