The tax credit program delivers good quality affordable housing to those who need it most and it has bi-partisan political support. Since a successful project will very often include a combination of government and private resources, tax credit multi-family housing is a true public/private partnership.
Presently, Congress is considering a move on a list of temporary extenders that industry leaders hope will result in at least a two-year extension of the 9% fixed rate for the Low Income Housing Tax Credit (LIHTC). Although it is an outside shot, there is a chance that the 9% fixed bill could get included into one of the permanent extenders when the Highway Trust Fund attached to this year’s budget goes to a vote around December 11.
With a timeline of tax reform after the presidential election, 2016 is shaping up to be a critical year for the industry to continue its advocacy efforts for the LIHTC program as well as other programs working in tandem with the tax credit.
In that light, it is important that the tax credit development community be politically involved. I have been an elected official in my city for nearly seven years, including a two-year term as Mayor. It has been my experience that the most successful industry leaders have three things in common:
- They Build Relationships – Elected leaders are just like anyone. They prefer to deal with those who they know. Make it a point to establish a relationship with elected leaders in your city, county, state and region.
- They Educate – It is impossible for elected leaders to know everything so you need to educate them on the importance of tax credit housing and the economic and social benefits that are provides. For instance the LIHTC program generates about $7 Billion per year in income and that nearly 2.6 million housing units were placed into service between 1987 and 2013 according to HUD. It is also highly recommended that you get your elected leaders to an actual development and show them how beneficial the development is to the community.
- They Know Their Ask – Make sure that when you have the opportunity to speak with elected leaders and policy makers that you are clear on exactly what you want them to support. Be precise in your ask and be persistent.
Walter Duke + Partners is an industry leader in the valuation and evaluation of LIHTC assets in the Florida market. Since 1994 we have completed over 2,000 valuation advisory assignments and market studies in excess of $4 Billion for a variety of clients including governmental agencies, developers, investors and lenders.
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