One of the most closely followed parameters in tax credit development is equity pricing. Although sometimes quoted as percent yield, equity pricing is usually expressed as the ratio of equity raised per dollar of tax credit over the 10-year compliance period for a project ($ Equity / $ Annual Tax Credit x 10). In the table below we present equity pricing for North Carolina projects awarded credits in 2012.
For projects that received awards in 2012, the average equity pricing was $0.86. Age restricted (elderly) projects averaged $0.86, while general occupancy (family) came in at $0.86. New construction deals averaged $0.86, while rehabilitation deals came in at $0.85. There were no adaptive reuse projects in North Carolina’s 2012 allocation.
The graph below shows the distribution of awards.
The overwhelming majority of projects were priced at $0.86. A handful were priced as high as $0.88 with several coming in between $0.82 and $0.85.
Allen & Associates Consulting, Inc. specializes in development consulting for affordable housing. Feel free to contact me (Jeff Carroll) at 704-905-2276 with any questions you may have regarding your project.