AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP

LCNB is a limited partner in a limited partnership that sponsors affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of this investment is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnership include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants.

The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at December 31 (in thousands):



	2015		2014
Affordable housing tax credit investment	$	1,000	—
Less amortization	12		—
Net affordable housing tax credit investment	$	988	—

Unfunded commitment	$	907	—

LCNB expects to fund the unfunded commitment over ten years.

The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands):



	Year ended December 31,
	2015		2014	2013
Tax credits and other tax benefits recognized	$	14	—	—
Tax credit amortization expense included in provision for income taxes	12		—	—