Low Income Housing Tax Credits

Reznick Group provides a comprehensive range of services to developers of properties that are financed through low-income housing tax credits (LIHTC) and tax-exempt bonds. 

Whether you are looking to obtain a low-income housing tax credit allocation, receive tax-exempt bond financing, invest in a tax credit fund or find investor equity, we provide application preparation and financial projection services designed to maximize the financial return of the transaction.  In doing so, we work closely with state housing credit agencies, public housing authorities and other public entities involved in policy development and implementation. 

Reznick Group prepares applications on behalf of developers for project financing and tax credit allocations in accordance with states’ procedures and Qualified Allocation Plans. We will help structure the project to address each state's rating and ranking criteria and guide the application through the Housing Credit Agency’s review process, loan closing and completion of construction. 

Services

  • Prepare and/or analyze applications for reservations of LIHTCs in conformance with each state's Qualified Allocation Plan.
  • Prepare financial forecasts and projections, including evaluation of items includable in the tax credit basis, evaluation of deal success and maximum mutual goals for partners.
  • Prepare matrix of equity proposals for consistent comparisons of equity deal.
  • Evaluate the treatment of alternative financing structures, including HOPE VI funds, grants and below-market financing, and provide maximum benefit structure.
  • Analyze the ramifications of tax-exempt organization's involvement in transactions.
  • Determine price and timing of equity contributions.
  • Analyze reasonableness of fee arrangements.
  • Analyze the propriety of partnership allocations in accordance with Internal Revenue Code Sections 704 and 752.
  • Analyze the impact of tax-exempt bond financing used in conjunction with tax credits and HOPE VI funds.