Improved LIHTC Equity Information Can Lead to Better Decisions

Published by H. Blair Kincer on Monday, February 5, 2018 - 12:00am

The understanding of equity and equity pricing can help guide understanding and effects of policy, as well as a glimpse at what proposed changes could mean for affordable housing production.

To improve the way Novogradac & Company tracks and reports on low-income housing tax credits (LIHTCs) equity prices, the LIHTC equity pricing information published in the Novogradac Journal of Tax Credits and online here will now come from a voluntary monthly survey of syndicator tax credit pricing. The reported weighted average consists of LIHTC equity price per credit based on letters of intent, rather than the price at closing. This information will provide even better industry insight and demonstrate the marketplace trends, both at the micro and macro level.

For example, the mere threat of tax reform dropped the value of tax credit equity during the months of Republican-led tax reform legislation as some investors went to the sidelines and others cut back on their business. Read more about how measuring LIHTC equity pricing can lead to better understanding in the February issue of the Novogradac Journal of Tax Credits