Structuring the Deal
By 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.
Foundations: Hard to Find, But Definite Possibilities
Everyone has heard of the Gates Foundation, the Ford Foundation, and the John D. and Catherine T. MacArthur Foundation.
But daresay, a much smaller universe knows of the Harry and Jeanette Weinberg Foundation, based near Baltimore, Md.; the Hyams Foundation, Boston; or the Marin Community Foundation, in the San Francisco Bay Area.
While they can be hard to track down, certain lesser known foundations – regional and local – can be a source of potential gap financing for affordable rental housing and LIHTC projects. While the dollars they award may be a fraction of a project’s total development cost, as they say, every dollar counts.
