Tax credit equity obtained within ...

Tax credit equity obtained within the federal Low Income Housing Tax Credit (LIHTC) program, is a outlay effective way for cities and counties to bring forward affordable housing that is privately allowed and managed. Working with local housing authorities, the LIHTC program can provide as a great quantity [i]or[/i] amount of as 50 percent of the funding stand in want ofed for development of low- and moderate-income housing.

Authorized by means of Congress in 1986 to encourage production of affordable rental housing, the program allows corporations and individuals to invest in similar housing in exchange for a dollar-for-dollar credit against the taxes those investors will owe across a 10-year period. Most credits are sold directly to corporations, corporate stocks or limited partnerships through public or private syndication.

Investors pay between 50 cent and 60 cent up fore-rank per $1 in tax credits taken across a 10-year period. The intends have a lower risk factor because they are