A curated library of short, practical explainers designed for equity investors in Low-Income Housing Tax Credit (LIHTC) transactions. Use this hub to onboard new staff, deepen your understanding of LIHTC risk and return, and connect to AHIC tools, worksheets, and best practices.
Highlights key ways LIHTC underwriting diverges from conventional apartments, including equity structure, lower-tier vs upper-tier pricing, construction and permanent debt expectations, developer fees, sponsor guarantees, layered financing, rental assistance, and exit dynamics over a 15+ year compliance period.
Learn how IRR is used to evaluate projected investor performance in LIHTC funds and direct deals, how it is calculated, and how a benefits schedule works. Includes a link to a sample benefits schedule to review with the Explainer.
Planned explainer on how partner capital accounts are maintained, how tax losses and contributions affect balances, and how capital accounts interact with liquidation waterfalls and investor gain/loss at exit.
Planned explainer on PSH underwriting from the investor perspective, including targeted tenancy, services funding stability, operating cost considerations and more.
Have an idea for a future explainer or a concept your team struggles to explain to new staff? Share your suggestion and help shape AHIC's Investor Knowledge Center.