Bond Financing 101 & Industry Update
By: John Rucker, CAHEC Board Member

Bond issues have become an important part of the affordable housing industry in recent years and are an important asset in CAHEC’s growing portfolio. The Low Income Housing Tax Credit (LIHTC) was designed to subsidize either 30% of the project through the 4% program (bond financing), or subsidize 70% of the project through the 9% program.
Simply stated, the 4% program requires over twice the debt as the 9% program making the 9% program more desirable. But, experienced developers like the 4% bond program because it is non-competitive unlike the 9% program. Generally, State Agencies allocate tax credits in its competitive program to smaller projects and very often rural communities. Pursuit costs for chasing a 9% deal and failing to get allocated is tough. 

Developers are closing more bond issues than ever. They are using bonds to finance larger projects in cities with significantly higher rents. The explosion in bond financing started in 2021. After years of lobbying by the affordable housing community, the Consolidated Appropriations Act of 2021 was signed into law effectively “fixing” the 4% low income housing tax credit program. The primary benefit was an increase in credits for bond financed projects represented by the value of the credit going from 3.07% to a fixed 4.00% resulting in a 30% increase in equity.
Registration Closes May 23!
Here's one last reminder to register for the 2022 CAHEC Partners Conference, being held on Wednesday, June 8, and Thursday, June 9, at the Grandover Resort & Conference Center in Greensboro, North Carolina.

Our staff has been working hard to plan another amazing event this year. Please check out the event website for more information on the conference agenda and registration.

Want to be even more prepared for our event? Here are 5 Things to Know Before You Go.

We look forward to making the 2022 conference one to remember!
CAHEC Celebrates 30 Years
Part of celebrating 30 years of CAHEC is looking back at pictures from the past. Here is a staff photo from 2003 - a handful of those employees are still at CAHEC today. Do you recognize anyone?

If you have any memories of CAHEC over the years, we'd love to hear from you! Send your stories to Stefanie Lee at slee@cahec.com. Your story could be featured in an upcoming newsletter!
New Faces at CAHEC
We are excited to introduce four new faces to the CAHEC staff!
Michael Allen joined CAHEC in February as a Fund Manager. He is a graduate of North Carolina State University and has also earned his CPA license. Before joining the team, Michael spent several years working in public accounting. We're excited for him to bring his knowledge to the team!
Rafi Ahmadi joined CAHEC in March as a Fund Manager. He earned his masters degree in Finance from Kardan University and has many years of accounting experience. Before CAHEC, Rafi handled various accounting responsibilities for the US Embassy, Afghanistan, and the International Committee of the Red Cross. We're so glad to have him join our growing team!
Debbie Baker joined CAHEC in March as a Fund Manager. She earned her bachelors degree in Business Administration from Mount Olive University and has spent most of her career working as an accountant, responsible for the full cycle of accounting duties for multiple entities at one time. She is already a wonderful asset to the team!
Nicole Wainwright joined CAHEC in March as an Asset Manager. She earned her degree in Business Management from Coppin State University and has 15 years of experience in both property management and asset management, including some work in the affordable housing industry. We're excited to have her join the team!
Portfolio Highlights
Expanding our Portfolio

CAHEC has added the following properties to our portfolio:

New Construction

Gentry Place - Pickens, SC; 60 units for families; Developer: Flatiron Partners, LLC / Classic Development Company, LLC

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