$4 Billion in LIHTC Trade-Ins Funded

December 23, 2009

$4 Billion in LIHTC Trade-Ins Funded

The Treasury Department announced on December 22, 2009 that since it has provided just over $4 billion to state and local housing finance agencies under the “tax credit exchange” program adopted as part of the 2008 economic recovery legislation.  Under this program, state  agencies that receive allocations of Low Income Housing Tax Credits (LIHTCs) can exchange up to 40 percent of their allocation and receive 85 percent of the value of the credit in cash. This program was designed to provide direct investment funding where lack of investor interest no longer made the LIHTC mechanism useful for raising equity to invest in affordable rental housing developments.  The complete list of total awards by state can be found on the Treasury’s website.