Can a CIT be linked to housing development?
Published on: November 11, 2024
An affordable housing project would not be an appropriate investment for a CIT because it is at counter purposes of generating income and property appreciation. Affordable housing is mandated to maintain low or affordable rents. Further, capital structures for affordable housing usually involve tax credits, bond structures or incentives and requirements that are expensive per unit and incompatible with the CIT objectives of building family net worth. The CIT does, however, target renters as investors.