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LIHTC Metrics Are Stronger Than Ever

Yet CohnReznick's latest survey of participants in the federal housing tax credits program cites concerns about the credits' trading prices as well as the program's current ability to meet growing demand for affordable units.

By Paul Bubny | paulbubny | Updated on September 08, 2017

Exterior of HUD headquarters HUD headquarters in Washington, DC; state housing authorities administer the federal LIHTC program.

NEW YORK CITY—Even as a new Freddie Mac survey of multifamily industry participants found that maintaining an adequate supply of affordable housing is a key concern, one of the most important instruments for doing so is on firmer footing than ever. CohnReznick LLP reports that properties financed with Low Income Housing Tax Credits enjoy better operating metrics today than at any time in the LIHTC program’s 31-year history. The accounting, tax and advisory firm released its latest survey of LIHTC participants Thursday in conjunction with its 2017 Annual Fall Affordable Housing Conference, running in Las Vegas through Friday.

Participants in CohnReznick’s sixth study of the LIHTC program operated a total of more than 22,000 properties in 2016, the year covered by the survey. On a median basis, they reported 97.8% physical occupancy rate, 1.35 debt coverage ratio, and more than $600 per-unit per annum net cash flow.

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