In the search for tax credit equity, affordable housing developers must give investors multiple reasons to do their deals.
Bundling the tax credit equity with debt products is one strategy, said Alex Viorst, a principal with Prudential Mortgage Capital Co., explaining that a firm may be attracted to buy a project’s tax credits if it is also providing a loan to the same deal.
Developers who are struggling to secure tax credit equity should also scope out investors who have a Community Reinvestment Act need where their deals are located, added Viorst, one of the speakers on the “How to Keep Your Tax Credit Deal Alive” panel at AHF Live.
He also noted that simpler deals are easier to sell these days.
Developers on the panel also explained how they are turning to different financing, including New Markets Tax Credits, to make their deals work.