LOW-INCOME HOUSING TAX CREDIT TRANSACTIONS

Low-Income Housing Tax Credit (LIHTC) funds are an essential component of nearly every D+B transaction. LIHTC developments carry a layer of federal requirements that demand very specific expertise. D+B has brought this knowledge to private-sector developers and public agencies completing dozens of LIHTC applications in states including Alabama, Florida, Colorado, Georgia, Kentucky, Louisiana, Mississippi, Pennsylvania, New Jersey, New York, North Carolina, Ohio, Tennessee, and Texas. For such clients, we analyze the annual qualified allocation plans (QAPs) issued by each state and provide strategic advice for the timing and implementation of multi-phase, tax-credit-financed developments.

Once an allocation is received, D+B assists clients with key tax credit milestones, including obtaining carryover certifications and completing 10% tests. Additionally D+B helps developers and public agencies to identify a tax credit syndicator. Usually, this includes issuing a solicitation for investors. D+B reviews responses to the solicitation and helps negotiate key business terms in the letter of intent. D+B then typically assists in reviewing key legal documents and in obtaining tax credit due diligence items necessary for final investor approval and closing.

After construction has been completed, D+B often assists in reviewing the cost certification prepared by accountants. D+B also has experience preparing submissions requesting an IRS form 8609, which is the final formal housing-credit allocation document.