LIHTC Investment Performance

Performance of low-income housing tax credit properties and investments have remained stable according to a report published by Ernst and Young LLP, Understanding the Dynamics III: Housing Tax Credit Investment Performance. The report can be found at: http://www.ey.com/us/taxcreditadvisory.

Key findings from the report:

• Investment returns have been stable and provide, on average, benefits that are 2 percent higher than originally projected.
• Loans to housing credit properties continue to operate with a foreclosure rate below that of other real estate assets. As illustrated in the following chart, the average annual foreclosure rate on loans to properties receiving LIHTCs averaged 0.02 percent in 2004.
• From 2000 to 2004, median physical occupancy levels in LIHTC properties ranged from 96 to 97 percent.