Affordable Housing and Tax Credit Transactions
Our Multifamily Housing Industry Team is heavily involved with representation involving the utilization of tax credits. Our team has intimate knowledge of how these tax credit programs work and understands the business and legal issues required to negotiate and complete tax credit transactions successfully on behalf of tax credit syndicators, developers and lenders. We help our clients evaluate risk, monitor program compliance, determine project eligibility, structure the transaction and protect their investments.
Specifically, we represent clients that regularly utilize the low-income housing tax credit (LIHTC) and the historic rehabilitation tax credit (HTC), in transactions involving various types of financing, including:
- Tax-exempt bonds
- Section 8
- HUD 223(f) and 221(d)(4) loans
- CDBG, HOME, and other federal program funds
- Local government funding
Low Income Housing Tax Credits
Our tax credit syndicator and financial institution clients operate nationwide, providing the capital necessary for the construction and rehabilitation of affordable housing. We advise them through and facilitate their engagement with the developer partner, carefully designing the new partnership’s profit and loss allocation structure with an emphasis on flexibility for our client. We are also experienced in representing low-income housing developers. No matter the role of our client, we collaborate with other transaction parties, utilizing a team based approach to monitor and accomplish due diligence milestones in order to reach goals in an efficient manner.
Our experience and knowledge of the low-income housing provisions of the tax code allow us to confidently guide our clients through the steps required to allow them to realize the benefit of the tax credits. Further, we seek to minimize the risk of tax credit recapture through the development of and adherence to clear due diligence review guidelines.
Historic Rehabilitation Tax Credits
Many of our clients are actively involved in projects seeking to revitalize buildings that are listed on the National Historic Register or are located in a historic district. We routinely work with developers, lenders and investors pursuing HTCs, leading, documenting, negotiating and successfully closing transactions. Often, these historic rehabilitation tax credits are paired with low income housing tax credits or new markets tax credits, a strategy which maximizes the return for our clients. This coupling of multiple types of tax credits also raises unique compliance issues, and requires careful construction of the partnership agreements allocating benefits between the various entities involved in the transaction.
Our full-service multifamily housing team has experience with all phases of the project life cycle, including:
- Acquisition and disposition
- Land use and zoning
- Condominium structure documentation
- Environmental compliance
- Ground leases
- Joint ventures
- Management agreements
- Utility provider issues
- Tax structuring