Frequently Asked Questions
For your convenience, our most common customer questions are answered right here.
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Does Lihtec make loans or investments in developments?
Lihtec is not a direct lender or investor. We work with existing investors and offer a secondary market for existing investments that they have funded. Our proprietary technology matches potential developments with interested investors, and the developer can elect to work with them.
What types of investments are available on Lihtec?
Lihtec caters to investors that are seeking federal and state tax credits. Some credits (such as the Illinois Affordable Housing Tax Credit) may be donation based.
Who is the team behind Lihtec?
Lihtec was founded by a former CFO of an affordable housing non-profit who recognized the inefficiencies in the funding process. These inefficiencies only add to the affordable housing funding crisis.
When can I expect a return on my investment, and how is it distributed?
There is no cash distributions in a LIHTC investment. The investor receives credits that can be applied on a dollar for dollar basis against their federal income tax liability. Additionally (and subject to individual tax rules), an investor may claim certain passive losses from their investment such as depreciation and amortization.
What is the investment term for a LIHTC?
This is a long term investment. Credits are not provided in a lump sum but instead are claimed in equal amounts over a 10-year “credit period”.
Do I need to be an accredited investor?
Federal and most state low income housing tax credits are limited to accredited investors only. There are certain state tax credits (Illinois Affordable Housing Tax Credit) that are donation based and not subject to securities laws.
Affordable Housing Developers
How much does it cost to use Lihtec's services?
There are no costs to the developer to use our services.
Do we have to be a non-profit to use Lihtec?
Lihtec’s services are available to for-profit and non-profit developers. There are certain tax credits and funds that are only available to non-profit developers.
Can I accept investments outside of Lihtec's platform?
Absolutely. There is no obligation to accept funds from our investor partners. Our hope is that we will be able to provide you with competitive and cost effective funds that will help you provide more affordable housing units.