AHF Online Article - Balancing Act

LIHTC investors, syndicators are cautious going into 2012

Low-income housing tax credit (LIHTC) investors and syndicators are much more reserved going into 2012 than they were a year ago.

Several leading firms are no longer projecting growth like they did last year. Instead, they are conservatively anticipating their investment volumes to be roughly the same as this year.

That’s a sign that the overall market may be tightening up after a big spike in pricing and drop in yields, a situation that could trigger some economic investors to stop or slow down on their investing.

While major banks will remain active LIHTC buyers in 2012, the question is will other investors.
“When you look at the larger banks, I think the top six of us account for almost 50 percent of the marketplace,” said Beth Stohr, president of U.S. Bancorp Community Development Corp. “The remaining 50 percent, that bucket, is less loosely known. That may cause some adjustments in the marketplace, but I think they’re yet unknown."

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