LIHTC

The Low-Income Housing Tax Credit is the largest single source of affordable-housing equity in the United States, and the deal mechanics look nothing like a market-rate transaction. Credits — not cash flow — are the asset that drives investor yield. Equity prices in cents per credit dollar, capital flows in on a pay-in schedule keyed to construction and 8609s, and the 10-year credit delivery curve plus a 15-year compliance period redefine what "hold period" means. Layer on QAP scoring for 9% deals, the 25% aggregate basis test for 4% bond deals, AMI-set rent caps, and a capital stack with soft debt, deferred developer fee, and federal/state subsidy, and the institutional questions become: how do credits price, how does the stack balance, and what does the exit look like.

These eight articles walk the LIHTC stack end to end. Start with LIHTC 101 if you are orienting on the program. Go straight to 4% with Tax-Exempt Bonds or 9% Competitive Allocation if you are pricing a specific deal type. The capital-stack and AMI articles are the workhorses for sizing and pro forma. Year 15 covers the resyndication and ROFR mechanics that decide investor exit. Acquisition/rehab is where the largest institutional pipeline now sits.