Advanced investments backed by trusted experience
Tax Credit Investing
Low-Income Housing Tax Credits (LIHTCs) have been directly responsible for the construction or rehabilitation of more than 100,000 new affordable rental units annually. This popular federal program, created by the Tax Reform Act of 1986, makes federal tax credits available to owners of affordable rental properties and leverages approximately $13 billion per year in private equity capital and has been the driving force behind much of the new affordable housing being produced today.
Corporations, insurance companies and banks have the opportunity to benefit from LIHTC investments. Investments are made through limited partnerships or limited liability companies. Investors can earn a solid economic return on their capital. This is where the Cinnaire team can step in and make a difference.
LIHTC funds managed by Cinnaire help investors minimize the risk of investing. Cinnaire provides multiple services including underwriting, investment management, asset management and compliance.
Benefits to Investors
Investors have the opportunity to claim a federal tax credit that is earned over a 15-year period, but is claimed over an accelerated 10-year timeframe, beginning when the property is placed in service and occupied.
Property owners also benefit from tax losses generated by the properties, which provide for additional tax benefits, further reducing an investor’s federal tax liability. Additional credits, such as federal historic and energy credits may also be available on LIHTC properties, which can enhance investment returns. Bank investors receive CRA consideration under the CRA Investment Test for LIHTC investments.
Nationally, of all real estate classes, this program has minimal loss related to foreclosure.
Cinnaire cares about the communities our investments back, and the value we deliver to investors. Our team’s expertise and attention to detail allows us to build a community of loyal and steady investors. We offer proprietary and multi-investor fund-based investment opportunities backed with this same level of expertise.
To maximize fund investment opportunities, Cinnaire focuses on a full-service approach to our clients from start to close of a deal. The Cinnaire team works with each investor to match the investor’s goals while providing the desired community benefits. We are creative in our approach, but conservative. This is why we have been able to foster relationships with steady, loyal investors across the country.
To learn more about the types of investing and benefits we offer please contact:
Executive Vice President, Capital Raising
517 364 8929