The Community Reinvestment Act and
Its Effect on Housing Tax Credit Pricing
Read this comprehensive analysis on the Community Reinvestment Act's (CRA) impact on housing tax credit pricing. CohnReznick recommends modest changes to CRA regulations to close the gap between "CRA-hot" and "CRA-not" markets.
Corporate investors, lenders and other enterprises investing in housing tax credits understand that these credits not only help banks meet their obligations under the Community Reinvestment Act (CRA), they offer institutional investors a competitive rate of return and a low risk profile.
CohnReznick’s Tax Credit Investment Services Practice provides strategic advisory and due diligence services to help clients make informed decisions on acquiring and managing tax-advantaged investments. From low-income housing to New Markets to renewable energy, we help them understand available tax credit structures, the potential returns on investment and the key market trends and issues necessary to accurately evaluate risk. Our services include:
- Tax credit and CRA investment strategies: We assist investors with strategic planning, risk and return analysis and assessment of tax credit options based on their specific investment goals and evaluate the performance of CRA-focused investing and lending strategies.
- Investment due diligence: We help clients evaluate managers of tax-advantaged investment fund offerings, examining their business strategies, senior management competencies, organizational structures and overall track record.
- Portfolio and asset management reviews: We review investment portfolio records to identify yield and benefit delivery results and unclaimed tax credit and loss benefits. We also advise on exit strategies designed to reduce the asset management burden.
- Market education and industry research: We provide policy and regulatory guidance and conduct benchmarking studies, develop training materials and present investment considerations covering the full life cycle of tax-advantaged investments.