Tax Credit Prices Fall as Investors Demand Greater Returns, Look To Alternative Investments

摘要

Low-income housing tax credit prices have dropped by as much as 10 percent since August as developers and syndicators have been forced to provide higher yields to compete with alternative investment opportunities. "We're seeing quite a change in pricing," said David Kunhardt, director of new product initiatives and equity for Apollo Equity partners, a syndication subsidiary of RBC Capital Markets. "Depending on the project, on average, the pressure from changes in the market has resulted in a price reduction of between 5 and 10 percent."