Insights
Affordable Housing News and Views was created to provide content of interest to investors, developers, syndicators and others in the affordable housing industry. The newsletter shares timely, usable tax, audit and advisory information and analysis related to affordable housing – including the Low-income Housing and the Historic Rehabilitation Tax Credits.
Winding Down LIHTC Fund Partnerships - Disposition Issues
Challenges and opportunities arise as syndicators approach the possibility of winding down their ownership interests in Low-income Housing Tax Credit (LIHTC or housing tax credit) fund partnerships. Accordingly, careful planning for year 15 dispositions of interests in housing tax credit properties is imperative – and recent legislation at the federal and state levels has changed the playing field with respect to disposition planning.
State of the 9% and 4% Tax Credits: Effect on Equity
Pursuant to the 2008 Housing and Economic Recovery Act, the 9% low-income housing tax credit (LIHTC or housing tax credit) rate was fixed at 9% - temporarily. The rate is temporary in that it will expire and revert to a monthly floating rate for all housing tax credit projects placed in service after December 30, 2013. Since it often takes up to two years between the time a property receives its initial reservation and the time it is completed and placed in service, the prospect of a floating rate lower than 9% may cause difficulties in underwriting and in planning assumptions of equity pay-ins for LIHTC projects as early as the beginning of 2012.
Legislative Update
Finding just the right financing to start or expand your company is a complex process that involves uncovering sources of money, using the proper means and evaluating whether the timing is good. If the economy is slow, it's more difficult to raise cash -- no matter how clever a business plan you have.
Upcoming Affordable Housing Events
Reznick Group participates in numerous affordable housing industry events and speaking engagements throughout the year. View the upcoming schedule of events.
