Caitlin Jones • 1 min read
Tax Credit Advisor, June 2011: Record numbers of U.S. renters are paying more than 30% of their income for housing costs and the problem is likely to worsen, according to a new report from the Joint Center for Housing Studies of Harvard University.
Caitlin Jones • 1 min read
Tax Credit Advisor, June 2011: There have been several positive changes in the affordable multifamily rental housing debt market in the past few months.
Caitlin Jones • 1 min read
Tax Credit Advisor, June 2011: Larry Curtis, the mustachioed president and managing partner of WinnDevelopment, likens the role of a developer to a musical conductor.
Caitlin Jones • 1 min read
Tax Credit Advisor ““ June 2011 ““ As he oversees his biggest project ever, Minneapolis developer George Sherman is living out one of Yogi Berra’s old lines ““ It’s déjà vu all over again. “Our first experience with low-income housing tax credits was on this same project ““ Riverside Plaza ““ in 1988. We acquired it through a negotiated sale from HUD, which had foreclosed on it. And we did a bond transaction using four percent credits. We got a whopping 50 cents per credit dollar [in equity], paid over a couple years.”
Caitlin Jones • 1 min read
Tax Credit Advisor ““ June 2011 ““ The federal new markets tax credit is one of the major funding sources for a new health care facility in the South Bronx section of New York City that will provide expanded services to low-income individuals and families in medically underserved local neighborhoods. Urban Health Plan (UHP), a network of federally qualified community health centers based in the South Bronx and Queens, plans to build a new, six-story, 54,000 square-foot community health clinic, expanding its services to communities in the South Bronx.
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011: How are state housing credit agencies coping without the massive extra dollars that the Tax Credit Assistance Program and Section 1602 exchange program once provided? What lessons did they learn? Did their experiences foster any lasting changes to their low-income housing tax credit programs?
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011: Federal Neighborhood Stabilization Program dollars, especially those from the second funding round (NSP2), can be an attractive source of funding for affordable multifamily rental housing projects, including those using low-income housing tax credits, panelists advised at the National Housing & Rehabilitation Association’s recent 2011 Annual Meeting.
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011:
“You tell me the price, and I’ll tell you the terms.”
– Negotiating posture adopted by a wise old developer
What’s the price?
Ask anyone in the LIHTC world how good a deal they made on their last transaction, and the answer always begins with one simple number: the equity price, measured in cents per dollar of LIHTC. It’s the universal cocktail-reception metric, the opening question to industry-expert panelists, the way we keep score and show we’re in the know: What’s the price?
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011:
Every dollar is precious in trying to put together a tax credit project. Whether it’s equity, debt, or gap financing, developers need to turn over every rock as they try to structure their next deal, such as a low-income housing tax credit property. Following are two examples of off-the-path funding sources that sponsors may wish to investigate.
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011: Yields continue falling and credit prices continue rising but investor demand for low-income housing tax credit investments remains strong, say industry officials.
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011: In a decision with broad implications for the tax credit syndication industry, the U.S. Court of Appeals for the Fourth Circuit has sided with the Internal Revenue Service and overturned a U.S. Tax Court decision that affirmed the validity of transactions in which Virginia state historic rehabilitation tax credits were allocated to investors with very small interests – of short duration – in upper-tier investment partnerships.
Caitlin Jones • 1 min read
Tax Credit Advisor, May 2011: You can’t accuse Michael Costa of thinking small. The housing veteran is sifting through a $3.4 billion portfolio of 276 low-income housing tax credit projects in 33 states and Puerto Rico to create a stream of new tax credit development deals – for years to come.