The Wisconsin Housing and Economic Development Authority (WHEDA) announced it has modified pricing assumptions for projects receiving 2011 low-income housing tax credit (LIHTC) reservations.
The staff determined that credit pricing has improved over the past year, and the pricing assumptions used for the applications were “significantly below” current market.
As a result, WHEDA has modified pricing and basis boost assumptions.
Awarded proposals are now assumed to be able to secure pricing of at least $0.06 higher than that used in their Application One. For example, an application that assumed a price of $0.76 is now assumed to be able to secure $0.82, according to a memo to LIHTC applicants.
The price increase will lead to smaller credit awards for nearly all applicants because fewer credits will be needed to achieve the expected equity investment, said WHEDA.
For more details on how the awards have been adjusted, visit www.wheda.com.