When Boring Is Exciting

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3 min read

Back in my freshman year at Syracuse University, I survived one of my toughest learning challenges – calculus class on Tuesday, Thursday, and Saturday mornings at 8. That barely edged out my class in geology, but at least there we got to build model volcanoes that actually erupted.

For me, calculus was incomprehensible – and boring.

So how can boring be exciting?

In recent weeks we found out.

Curling up to read a 17-page IRS revenue procedure on safe harbor requirements for historic rehab tax credit partnerships may sound like a definite snoozer. Yet this newly issued guidance has spurred genuine excitement among participants in the historic tax credit industry. In fact, I imagine that many of them – tax lawyers, accountants, investors, developers – were downright jiggy when it came out, dancing in their offices (privately of course) as they parsed the Service’s words.

No wonder. The guidance should eventually prompt resumption of a healthy flow of institutional investor equity dollars to historic tax credit deal, by ending the protracted uncertainty that roiled the industry after the Historic Boardwalk Hall decision. In this issue, we provide an in-depth discussion and analysis of the new IRS guidance by Washington tax attorneys Jerry Breed and Corenia Riley Burlingame, as well as a report on industry reaction. (“Certainty at Last,” p. 10, “Industry Welcomes,” p. 12)

Year-end 2013 was also a feel-good period for the low-income housing tax credit industry. Syndicators celebrated a solid year in raising LIHTC equity, and many industry officials believe 2014 could be even better because of the recent FASB accounting rule changes and new CRA guidance from the banking regulators. (“2014 Outlook,” p. 22)

This month we also report on the popular types of debt financing being used for existing and new affordable multifamily housing projects and some of the trends occurring in the field. (“Favored Times,” p. 32)

Finally, our case study article on Alegre Apartments in high-cost Irvine, Calif. provides some additional excitement. This innovative new LIHTC development, which broke ground in November, features a partnership between a for-profit developer and a local community land trust under a transaction structure that will result in the production of 104 new permanently affordable apartments. (“Perpetual Affordability,” p. 4)

I guess the lesson from all of these stories is that while the tax credit industry may seem dry at times, sometimes you can mine excitement from what at first appear to be mundane – even boring – subjects or events.

Enjoy the issue. This month you have my permission to dance in your office.