Washington, DC Fannie Mae Enterprise Community Partners
The deal between Fannie Mae and the Citigroup Inc. subsidiary sparked debate about the emergence of a secondary market for LIHTCs. There is little mystery why one hasn't developed before now since, at 20 years or so, the industry is still quite young. Citibank, for one, though, would like to see such a development occur sooner rather than later.
"One of the great things about this transaction is that it demonstrated the liquidity in the LIHTC market," says Andy Ditton, managing director of Citibank Community Development, a business unit of Citigroup. "That has never really been demonstrated before. Until now, there have largely been one-off secondary market sales on an idiosyncratic basis."
He says he hopes this transaction will bring more players to the market, especially if they believe a secondary market is developing. "Investors that don't feel comfortable with a 15-year time horizon for their tax needs will not invest, but if there was a secondary market, they might step in," he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
