Blogs| 5 Ways LIHTC Asset Management Software Breaks Down Silos and Builds Accountability

5 Ways LIHTC Asset Management Software Breaks Down Silos and Builds Accountability

Written by

Anuj Pratap

Published

July 1, 2024

Topics

LIHTC

Article Contents

    LIHTC Asset Management has traditionally been clunky, with data split by Stateline and office politics.   

    Asset managers must coordinate between developers, fund managers, property managers, and the rest of their team, which can be spread across various locations.   

    This makes an asset manager’s job a nightmare. And to make it even more complex, the LIHTC program is administered at the state level, meaning asset managers probably need to know and meet compliance regulations in different states.   

    Here is where a SaaS LIHTC portfolio operations management solution can help asset managers do their job well.   

    In this article, we unpack five ways LIHTC asset management software breaks down data silos and builds accountability within asset management teams and across LIHTC portfolios. 

    Stakeholder Communication 

    LIHTC asset managers require a centralized information aggregator across their various LIHTC portfolios. Every LIHTC project has a different variable to track. More than one asset manager may often need to deal with a LIHTC project.  

    Manually uploading, compiling, analyzing, and disseminating crucial project data and insights month by month between different asset managers can quickly swap any team’s productivity. 

    Fusion Centralizes Communications 

    Integrating a SaaS LIHTC asset management software like Fusion can fill a crucial gap and build bridges within and across asset management teams.  

    Fusion can automate routine uploads across various LHITC projects. It can also streamline and expedite the processing of this data, ensuring that teams spend more time analyzing data and less on menial tasks like uploading data.   

    Fusion also centralizes communications for teams. With Fusion, asset management teams can stay on top of compliance flags. Fusion automatically tracks and alerts pre-set stakeholders of any compliance red flags, quickly bringing the correct information to the right resource. 

    Monitoring Financial Data 

    Tracking and monitoring compliance data and the financial health of a LIHTC project is also a task that asset managers must balance to ensure the health of their LIHTC portfolio. 

    Asset managers track monthly trial balances and occupancy rates to gauge the performance of their projects. In addition, they also need to maintain and track other financial reports like cash flow, capital expenses, and income statements and match these with allocated budgets to optimize the economic performance of their project. 

    Fusion Does the Heavy Lifting 

    Fusion helps make an asset manager’s life easier. It’s LIHTC software for real-time financial reporting and automates many of their routine data upload and processing tasks without even breaking a sweat.   

    With Fusion, asset managers can quickly get custom reports at their fingertips to track and monitor the project’s financial health. Since it integrates with many portfolio managers’ communication platforms, Fusion can efficiently distribute this data to where it’s needed most. 

    Compliance Tracking 

    Much of an asset manager’s job is to deal with issues that might arise with compliance in a LIHTC project. Since the compliance period is over 15 years, sloppy work won’t go as far.  

    Asset managers must track specific aspects of the property over the 15-year compliance period to ensure compliance with the minimum set-aside that the project has committed.    

    LIHTC projects need to track their tenant’s incomes and match these with the state or federal income limits for affordable housing in their area. In addition, they must also track their rent caps to make sure they qualify as affordable housing.  

    Building a software system to do this in-house requires professionals with credentials like an accelerated online computer science degree. Quickly hiring people with the essential skills to develop and optimize advanced asset management systems is complex and may stretch organizational resources. 

    Fusion Does the Job for You 

    Fusion automatically tracks property rent and tenant income limits to simplify an asset manager’s job. It proactively red flags any instance so asset managers can quickly identify and address compliance challenges. With Fusion, asset managers can solve problems before they become tax liabilities. 

    Preserving Investment Value 

    An asset manager’s job is to maintain a property’s investment value.   

    Asset managers are hired by investors or investment funds who invest in LIHTC projects to earn consistent returns over the long term.   

    A large part of these returns is directly linked to the tax credit that the project has already claimed and which the funds have already monetized.   

    LIHTC projects, however, are subsidized by the government. This means that the tax credits the project has earned are contingent on its continued compliance with affordability regulations.  

    Any noncompliance can result in a recapture of the tax credit and, consequently, greater tax liability in the current year.   

    Recapture of tax credits reduces the value of an investment. Therefore, tax claw-back is something that every asset manager dreads. 

    Fusion Saves the Day 

    Yes, that’s right! Fusion can be your personal superhero. Fusion helps asset managers ensure their LIHTC projects stay compliant and maintain reasonable occupancy rates.   

    With Fusion, LIHTC projects continue to accrue value. Fusion helps asset managers keep rent prices in line with wage increases. Plus, it also tracks income limits in the areas.   

    With Fusion, asset managers can balance rent increases with income limits to optimize the revenue they generate from each project: not too high to be flagged nor too low to fall behind on mortgage payments.   

    Add to this the continued tax credits that the project enjoys, and you have a project that generates consistent returns over its lifetime. 

    Data Security 

    According to Statista, the global count of Internet users exceeds 5 billion. That’s 66% of the world’s population! With our world becoming increasingly hyperconnected, the increasing threat of cyberattacks is only natural.  

    The University of Maryland estimates that cyberattacks occur approximately every 39 seconds. Data security and privacy are paramount, especially in financial technology.  

    Finance software is especially susceptible to ransomware and can be extremely expensive to recover from. 

    Fusion Protects Investments 

    Fusion’s asset management software digitizes the LIHTC portfolio management. It ensures data security by planning and implementing secure online control systems. In addition, it also backs up data to ensure availability at any time. You can rest easy knowing your data is safe, secure, and always available. 

    Digitize Your LIHTC Portfolio Operations 

    Digitizing LIHTC portfolio management has many advantages. It can streamline routine processes, improving the efficiency of asset management teams that are spread across locations. It can also ensure that stakeholders are always informed and connected. Fusion does all this and more. And it works with your present setup without significant overhauls. It’s the easiest way to step up your LIHTC portfolio operations. 

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