Below is a clip buried in Freddie Mac's 10-Q for the 2nd Quarter of 2009. Take a close look at the last line - if Freddie ends up selling its tax credit portfolio, the terms have the potential to change the affordable housing industry for a long time to come.
LIHTC Partnerships
We invest as a limited partner in LIHTC partnerships formed for the purpose of providing equity funding for affordable multifamily rental properties. The LIHTC partnerships invest as limited partners in lower-tier partnerships, which own and operate multifamily rental properties. These properties are rented to qualified low-income tenants, allowing the properties to be eligible for federal tax credits. Our investments in LIHTC partnerships totaled $3.9 billion and $4.1 billion as of June 30, 2009 and December 31, 2008, respectively. Although these partnerships generate operating losses, we realize a return on our investment through reductions in income tax expense that result from tax credits. Our exposure is limited to the amount of our investment; however, the potential exists that we may not be able to utilize some previously taken or future tax credits. In consultation with our Conservator, we are considering potential transactions to realize the value of these interests, if market conditions are appropriate.
Friday, August 7, 2009
Sunday, August 2, 2009
Long Two Months
Just finished two books on the subjects of cities, complexity, chaos theory, etc. The first was "The Self-Organizing Economy" by Paul Krugman. This book frustrated me for about 10 years, but I've finally made my way through it. The topic is fascinating, the writing less so. But, all in all, worth paying attention to (the guy won a Nobel Prize for his work in this area).
The second was "Complexity: The Emerging Science at the Edge of Order and Chaos" by M. Mitchell Waldrop. More like a history/story re: how the study of complexity began to take shape. The tough thing about this book is that it combines technical issues without much background info so while it is sort of interesting the lay person can/should skim various sections (if you are like me, you'll know when you get there because your eyes will glaze over).
Plus, I've since knocked down a couple of articles on the subject as well.
And, I found an interesting website on the topic: http://blog.casa.ucl.ac.uk/
Still lots more to learn and understand before getting back to some serious writing.
The second was "Complexity: The Emerging Science at the Edge of Order and Chaos" by M. Mitchell Waldrop. More like a history/story re: how the study of complexity began to take shape. The tough thing about this book is that it combines technical issues without much background info so while it is sort of interesting the lay person can/should skim various sections (if you are like me, you'll know when you get there because your eyes will glaze over).
Plus, I've since knocked down a couple of articles on the subject as well.
And, I found an interesting website on the topic: http://blog.casa.ucl.ac.uk/
Still lots more to learn and understand before getting back to some serious writing.
Subscribe to:
Posts (Atom)
Posts
