July
2025
A Big Boost for Affordable Housing Deals
In 2020, IMPACT Community Capital launched a privately offered tax-exempt loan program that provides institutional investors with access to tax-exempt permanent first mortgage investments backed by 4% Federal Low Income Housing Tax Credits (LIHTC) developments.
With the LIHTC program experiencing its most significant expansion in decades this July, the pipeline for this type of tax-exempt financing and the development of affordable housing could see rapid expansion. Novogradac estimates that these expanded LIHTC benefits could lead to the creation of an additional 1.22 million affordable rental units over the next decade, illustrating the far-reaching impact of these program enhancements.
However, policy improvements, no matter how supportive, aren’t enough. We continue to believe that private capital is required in concert with government programs to make housing truly affordable and accessible.
To hear more from CIO Michael Lohmeier, we invite you to read our quarterly market commentary here.
