Low-Income Housing Tax Credits (LIHTC)

Federal tax law provides tax credits 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 in the affordable housing industry.

Our services may include:

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 model – 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.

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.

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.

Exit strategies and services – When the partners decide 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.

Low-Income Housing Tax Credits: