Novogradac LIHTC Working Group
Novogradac LIHTC Working GroupSupportAdvocacy
Summary: The Novogradac LIHTC Working Group, representing affordable housing professionals and investors, supports the proposed regulatory capital rule changes but urges the agencies to specifically lower the risk weight for LIHTC equity investments and loans to 20%. They argue that LIHTC investments have a significantly lower risk profile than traditional real estate, citing low foreclosure rates and historical performance data.
Comments attached from the Novogradac LIHTC Working Group on Regulatory Capital Rule: Proposed Revisions to the Risk-Based Capital Framework for Category I and II Banking Organizations and Modifications to the Standardized Approach for Credit Risk