Low-Income Housing Tax Credits (LIHTC)
Understanding the complexities of your housing project.
Over the past thirty years, we have developed an in-depth understanding of the complexities of your projects including tax credits provided by federal law for qualified costs of acquisition, rehabilitation and/or new construction of affordable housing. Some states have a matching tax credit program. We assist our clients by providing hands-on services tailored to their specific needs and level of experience to help you see your project to completion.
Our services include:
- Market demand studies – Based on an in-depth analysis of the current market and a deep understanding of factors that affect demand, our market demand studies position your project for success. We help you identify market feasibility, absorption potential, supply/demand, household growth, demographic trends, competition, and more.
- Financial modeling – We assist our clients in developing a financial model of the potential transaction and future year’s operations. If needed, we also provide guidance for state agency tax credit applications and guide developers to potential tax credit equity investors.
- Tax return preparation – We carefully prepare each return to meet the reporting requirements and deadlines unique to the LIHTC industry with specific emphasis on the requirements of the tax credit investor.
- Cost certifications – Audits of the project costs are required by the state housing agencies and they may require a mortgagor (owner), LIHTC, contractor, and historic tax credit cost certification.
- Financial statement audit – An audit of the annual financial statements is required by state housing agencies and equity investors. We are licensed in multiple states and work with a variety of tax credit equity investors. We tailor the audit reporting to meet the specific needs of each user of the report and plan and perform the audit to meet the reporting deadlines.
- Exit strategies and services – When it's time to sell or redevelop the property under a new ownership structure, we can assist with exit strategies to enhance the transaction and reduce unexpected tax consequences. A transfer of physical assets (TPA) audit may also be required on disposition, depending on the existing financing.