summer 2005

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A Look Inside...

Investing in Low-Income Housing Tax Credits

How LIHTC Funds Can Help Banks Invest in Affordable Housing

LIHTC Internet Resources

LIHTC Investment Performance

NASLEF Contact Information

Side by Side Investing

Helpful Hints for First-Time Bank Investors in LIHTC

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This Just In... OCC's Districts Report on New Investment Opportunities for Banks
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Investment Resources for Part 24 Authority

Part 24 Resources on the Web

Common Part 24 Questions

CD Investment Precedent Letters

Investments in National/Regional Funds

Fourth Quarter 2005
Part 24 Investments

Regulation and CD-1 Form

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OCC's Community Affairs Department

(202) 874-5556


Articles by non-OCC authors represent their own views and are not necessarily the views of the OCC.

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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:

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.

Average Annual Foreclosure Rate By Asset Class, 2004

Click graphic for a larger image