Low Income Housing Tax Credits (LIHTC)

Owners, developers and investors can realize substantial financial benefits by preserving and building affordable housing developments. Taking full advantage of Low Income Housing Tax Credit (“LIHTC”) requires diligent evaluation, as well as thoughtful coordination and planning.

Backroads Capital Partners provides strategic planning and advisory services that optimize the financial benefits of leveraging the Low Income Housing Tax Credit. Our professionals share their vast knowledge and expertise with developers, owners, investors and others involved in affordable housing, focusing on the areas of strategic assessments, transaction structuring, compliance, application preparation, financial calculations and projections. We ensure that our client’s affordable housing deal is completed quickly, accurately, and with the maximum financial benefit and return on investment.  The services of BCP and our federal tax credit partners include:

• Preparation and review of applications for allocations of tax credits in conformance with each state’s qualified allocation plan

• Application pre-scoring to optimize the likelihood of obtaining tax credits

• Certification for the carryover allocation (10% test)

• Placed-in-service cost certification

• Financial forecasts and projections

• Evaluation of the treatment of HOPE VI funds, HOME, federal grants, and below-market financing

• Development of  transaction structuring to meet 50% test for tax-exempt bond financed tax credit deals

• Establishment of price and timing of equity contributions, and analysis of fee arrangements

• Analysis of the impact of a tax-exempt organization’s involvement

• Analysis of the propriety of partnership allocations according to IRS Code Sections 704 and 752

• Compliance consulting and advisory