LIHTC Equity Investments

How It Works

We partner with experienced syndicators, developers, and housing experts to invest in LIHTC equity properties nationwide, supporting the creation and preservation of affordable rental housing for those who need it most.

The LIHTC equity investment program is a federal initiative designed to increase the supply of affordable rental housing for low- and very low-income households. Here’s how the process works:

1. Allocation of Tax Credits
   The federal government allocates LIHTCs to state housing agencies
2. Awarding Credits to Developers:
   State agencies award these credits to affordable housing developers who propose qualified projects, or those who have received competitive tax-exempt private activity bond allocations for qualified projects.
3. Attracting Private Investment:
   Developers exchange the tax credits with corporate investors—like Freddie Mac—who provide equity capital needed to build or rehabilitate affordable multifamily rental housing.
4. Ensuring Affordability:
   In return for this support, properties financed through the LIHTC Equity program must reserve a set portion of their units for low-income renters, typically those earning at or below 60% of the area median income (AMI). Some states may require the developers to target even lower income levels.
5. State Oversight:
   State agencies administer the program and may add requirements or incentives to further increase affordability and the number of units available.

Our Syndicators 

By working together with our syndicator partners, we help ensure that more individuals and families across the country have access to safe, high-quality, and affordable homes.