Assessing the Market for Property Disposition at Year 15 and

Earlier

Katherine AlitzBoston Capital Asset Management

IPED—BostonNovember 20-21, 2007

Assessing the Market for Property Disposition at Year 15

and Earlier

“There is a booming market for the sale of housing credit properties at Year 15 and before.”

Assessing the Market for Property Disposition at Year 15

and Earlier

The HERA impact on LIHTC Dispositions

• Elimination of Surety Bond Requirement suggests an increase in sales after Year 10

• Transfer of underwriting responsibilities from Surety to Seller

• Other features of HERA should facilitate LIHTC resynidications

Assessing the Market for Property Disposition at Year 15

and Earlier

Year 15 sale trends

• Movement to portfolio sales

• Investors in rural properties looking for tax benefits

• GP interest transfers

Assessing the Market for Property Disposition at Year 15

and Earlier

LIHTC Disposition and the Financial Crisis

• Just starting to see the effects

• Currently limited to resyndications

• What happens in 2009, 2010 and beyond?