LIHTC Allocation Calculator

LIHTC equity contributes 60–80% of affordable housing project capital.

Eligible basis

Applicable %

Qualified basis %

Credit price ratio

Total LIHTC equity

$8,100,000

Annual credit

$900,000

10-year credit total

$9,000,000

How the math works

Annual credit = qualified basis × applicable %. Total = annual × 10. Equity = total × price ratio.

$10M × 9% = $900k/yr × 10 = $9M credits × $0.90 = $8.1M equity.

How to Use

Enter eligible basis.
Enter applicable %.
Enter qualified basis %.
Enter credit price ratio.
Read total lihtc equity.

Frequently Asked Questions

LIHTC mechanics?

9% credit (competitive): for new construction or sub rehab, ~70% subsidy of eligible basis over 10 years. 4% credit (non-competitive, with bonds): ~30% subsidy. Credit calculated on qualified basis × applicable percentage × 10 years. Investor equity: typically $0.85–0.95 per $1 of credit. State-level QAP scoring drives allocation. Compliance period: 15 years initial + 15 years extended. Year 15 exit: investor exits, sponsor often refinances and continues affordable. State-specific cap on credits + per-project cap.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.