Tax Credit Advisor – November 2014 – With just two months remaining, it appears 2014 will turn out to be a banner year for the low-income housing tax credit (LIHTC) market in terms of the total volume of equity raised, even as syndicators are being squeezed on profitability, and yields on multi-investor funds continue to fall. “I think [total LIHTC volume] is going to be around $11.5 billion,” says Fred Copeman of CohnReznick LLP. “That would be a record.” The current record of about $11 billion was set in 2013, he noted. Several months ago, when projected after-tax yields on many national multi-investor funds dipped below 7%, some industry participants feared that investment in LIHTC product might wane considerably, especially among so-called economic investors (e.g., insurance companies). But that hasn’t happened. “Investor demand is as robust as it possibly could be,” observes Jack Casey of Meridian Investments, Inc. “I don’t know of anybody that is not selling all of their inventory.”
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