CohnReznick issued its annual Housing Tax Credit: Investment and Operational Performance Report analyzing the economic performance of Low-Income Housing Tax Credit (LIHTC) properties across the nation and a state-by-state report of LIHTC properties. CohnReznick also launched a new LIHTC interactive tool that provides information by state and county.
CohnReznick’s report provides detailed analysis of more than 23,000 LIHTC properties (1.7M apartments), including: performance data for low-income housing tax credit properties, historical trends including occupancy (physical and economic), debt coverage ratio (DCR), and per unit per-annum cash flow.
The report rates property performance based on:
- Geographic area
- Property size
- Property type (garden, high-rise, mid-rise)
- Credit type (9% or 4%)
- Developer type (for-profit or non-profit)
- Tenancy type (family, senior, special needs)
- Availability of rental assistance
- Availability of property tax relief
- Ranges of hard debt ratios
- Data on foreclosure rate and examination of the leading causes
In 2016, LIHTC properties, on a median basis, had a 97.9% occupancy rate, a 1.40 debt-coverage ratio (DCR), and a $688 per-unit per-annum net cash flow (cash flow available after paying expenses, mandatory debt services, and required replacement reserve contributions).