A proposed approach to making affordable-housing LP ownership accessible through smaller subscriptions and clear investor education. Note: current fund offerings are directed to corporate investors; individual subscriptions are proposed through separate project vehicles.
The proposed individual-investor approach divides the equity participation into smaller LP interests, so an investor can participate in affordable housing without acquiring an entire property. Project selection, legal eligibility and tax-benefit use must be assessed before participation.
Review investment eligibility, liquidity needs, risk tolerance and whether the allocated tax benefits can be used.
Understand the local community, business plan, capital needs and proposed holding period.
Assess the subscription amount, funding calls, tax allocations, cash rights, reporting and transfer restrictions.
Participate only through the approved offering process and receive investor statements and tax reporting.
For planning, ABS is considering subscriptions of up to $25,000 per investor per year. This is a proposed program limit.
| Illustrative equity raised in one year | Contribution per investor that year | Fully participating investors |
|---|---|---|
| $50 million | $25,000 | 2,000 |
| $75 million | $25,000 | 3,000 |
Simple subscription arithmetic only. The count changes with contribution size, funding periods, fees and the equity actually sought. Repeated annual contributions by the same investors are not additional investors.
The IRS $25,000 special allowance is a separate passive-activity tax calculation. It is not a $25,000 annual LIHTC credit allowance and it does not set a subscription limit.
Individual credit use and deductible losses need separate calculations. Owning an LP interest does not mean that all credits and losses immediately offset salary or other income.
Contact ABS to arrange a conversation and request the appropriate project materials.
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