The housing credit, formally called the Low Income Housing Tax Credit (LIHTC), was created by the Tax Reform Act of 1986. In 1995 a group of companies came together as the charter members of the Affordable Housing Investors Council, which they established as a 501(c) (6) trade association.
They were motivated by a desire to share the best thinking in how to underwrite these new investments and to improve transparency in the field through standardized data collection and reporting.
The original officers represented USAA, Chrysler Capital, KLT Investments, and Fannie Mae from among the initial 25 founding corporations.
Since its inception, AHIC has:
- established best practices in underwriting and asset management that have been widely adopted by the field; these have contributed to the tremendous success of the program and its position as the best-performing real estate asset class in the United States, with foreclosure rates less than one percent
- developed engaging and innovative educational programming for members and other industry participants
- brought the experience and expertise of the investor community to support improvements to the housing credit finance system
- provided crucial financial support and data for key research projects about housing credit developments
- created standard formats for reporting, watch lists, and risk ratings
- produced guidelines for acquiring affordable housing projects, negotiating deal terms and conducting secondary market transactions