3. Tax Credit Pricing
The LIHTC market has made a return to post-recession levels in 2015. The past year has seen prices at all-time highs and a continued drop in yields. In the third quarter, tax credit investors reported seeing bids as high as $1.18 and $1.21.
“I doubt anyone would have thought that prices would continue to escalate during the year,” said Patrick Sheridan, executive vice president of housing at nonprofit Volunteers of America.
Beth Stohr, director of new production, affordable housing tax credit investments, at U.S. Bancorp Community Development Corp., also said this past year was probably the most competitive that many in the industry have been through.
“I’ve heard people say this is 2006 all over again. It does feel like we’re back at the other peak in the marketplace. It’s a very competitive time,” Stohr added.