AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP

LCNB is a limited partner in limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments 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 partnerships 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):



	2016		2015
Affordable housing tax credit investment	$	2,000	1,000
Less amortization	93		12
Net affordable housing tax credit investment	$	1,907	988

Unfunded commitment	$	1,617	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,
	2016		2015	2014
Tax credits and other tax benefits recognized	$	103	14	—
Tax credit amortization expense included in provision for income taxes	81		12	—