Low-Income Housing Limited Partnership

Low-Income Housing Limited Partnership

A limited partnership in which partners buy or construct housing for persons with low or moderate income such that their rent cannot exceed a certain amount. Because rent is controlled, cash flow from the investment is minimal; however, the United States provides tax credits on these partnerships for up to 150% of the amount invested. One thus invests in a low-income housing limited partnership for the cash flow from the tax credits, rather than from the investment itself. One may not sell one's interest in this type of partnership for 15 years.
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Examiners favorably commented on the more than $2 million in investments in community development organizations made by Family FSB during the examination period, including investments in low-income housing limited partnerships, small business loan funds, and programs for housing rehabilitation.
For example, BB & T Financial Corporation, a parent of Branch Banking and Trust Company, has invested as the sole limited partner in three separate low-income housing limited partnerships that developed a total of 118 rental units in three North Carolina communities.

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