Since its inception in 1986, the LIHTC program has helped createmore than 3.1 million units of affordable housing, including nearly2.6 million units affordable to low-income households. But whathappens to these properties when their compliance periods end atyear 15?

It turns out that most property owners—especiallynon-profits—continue to operate their properties as affordablehousing beyond the term of IRS regulatory requirements. This ismostly due to the extended-use agreements that run with the land,but also fits with ownership's approach to affordable housingpreservation. There is also now a wide variety of sophisticatedfinancial tools to secure the capital needed to preserveaffordability.

The various players in a LIHTC partnership all have differingagendas about when is an appropriate time to buy-out a partner orsell to a third-party buyer. For these reasons, it is critical toevaluate your property and plan for a transition starting in year13 or earlier.