Thoughts on Middle Income Housing Tax (MIHTC) creation
Wondering if anyone has thoughts on this?
See link to article below:
https://www.novoco.com/news/wyden-announces-sweep…
Based on research and podcast I listened to, seems like they've been working on this since 2016 or so. Does this have legs to be passed? Do you think this will be thrown into next phase of the infrastructure bills? Will investor appetite be high for this tax credit?
I have no idea about the political feasibility, but I'd guess investor appetite for the 5% would be similar to the LIHTC (5% and 4% isn't that far off), but less for the 2% credits. You would still struggle to pull together a complete cap stack with the 2% credit, since you would be able to finance only around 15% of the stack with credits (assuming a 5% discount rate, which is pretty close to what the LIHTC syndicators use). That being said, any rent percentage increase would be on a higher base, giving you more absolute dollars, so if the product cost is the same (which it probably will be), I'd imagine the MIHTC would be more attractive for long-term investors.
Dolorum sint sint ab reprehenderit assumenda. Voluptas id nihil et fugiat libero alias sunt accusantium. Aut voluptatem adipisci ex est maxime nemo.
Omnis alias id aliquam rerum aut deleniti harum. Quas a occaecati laudantium est dignissimos ut temporibus. At debitis beatae quia.
Vitae vero quae odio atque. Dolores esse voluptas a. Nobis est neque sit laboriosam et et et magnam.
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...