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Housing Tax Credit Equity

Created by the Tax Reform Act of 1986, with strong bi-partisan support, the Low-Income Housing Tax Credit (LIHTC) is touted as the most successful producer of affordable housing in our nation’s history. Now in its 30th year, the LIHTC Program is a federal Internal Revenue Service program that provides federal tax credits and tax losses to investors in order to incentivize private investment in affordable housing. State housing finance agencies administer this federal IRS/Treasury Program at the state level and can therefore tailor the program to fit each state’s unique affordable housing needs.

The program allows corporate investors to take a ten-year federal tax credit and tax losses in exchange for an up-front capital contribution toward an equity position in owning new-construction and rehabilitation affordable housing. Program restrictions require that developments serve households at or below 60 percent of area median income, but allow for an increase in household income, as individuals build financial capacity.

Cinnaire has been active in the LIHTC industry since the company’s inception. A key advantage of Cinnaire’s participation in this program is on-the-ground presence throughout our Midwest and Mid-Atlantic footprint. Cinnaire staff understand their communities and are actively involved in them, and lead teams of talented problem solvers who offer creative ways to address issues as they arise. Cinnaire’s asset management and fund management staff provide some the best-in-industry reporting to investors. To date Cinnaire has invested over $3.7 billion in over 676 housing developments with a total of over 47,000 affordable apartment homes.