Municipal Mortgage & Equity, LLC, (MuniMae) has agreed to sell substantially all of its low-income housing tax credit (LIHTC) business to an affiliate of JEN Partners, LLC, a New York-based private equity real estate firm.

The deal involves the LIHTC assets operated by MuniMae subsidiaries, MMA Equity Corp. and MMA Financial TC Corp. other than its interests in certain guaranteed funds.

The approximately $30.7 million sale consists of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by the purchaser.

In a press release, officials said the sale is structured to occur in two closing. The first will cover at least 30 LIHTC funds and the operating assets of the business, inclusive of employments with a cash payment of at least $14 million plus the assumption of liabilities.

The second closing will cover the remaining assets being transferred plus the balance of cash consideration.

MuniMae said it will retain control of certain LIHTC funds in which the firm has guaranteed obligations and will engage the purchaser to manage the funds.

“This sale is consistent with our previously announced initiatives and supports our strategy to become a smaller, more focused enterprise,” said CEO Michael L. Falcone. “We have no present intent to sell any other business lines, but we may continue to sell certain assets.”

MMA has been one of the largest LIHTC syndicators over the years, raising more than $1 billion in tax credit capital in 2004, 2005, and 2006, according to Affordable Housing Finance surveys.

The tax credit market has struggled recently, with the withdrawal of leading tax credit investors, including Fannie Mae and Freddie Mac. Without profits, corporations do not need the credits to offset their tax liabilities.