Glenn Petherick Author Archives

Judicial Surprise: Appeals Court Decision Has Tax Credit Industry on Edge About Puts

7 min read

A January 9 ruling by the U.S. Court of Appeals for the Federal Circuit has some tax credit industry participants worried about the use of put options in transactions utilizing federal historic rehabilitation and new markets tax credits. The ruling held that a tax shelter transaction did not have substance due to the “reasonable likelihood” […]

The Greening of Affordable Housing: New Initiatives Promise Opportunities

10 min read

At Castle Square Apartments, a 40-year-old HUD-assisted apartment complex in Boston, WinnDevelopment, in partnership with the tenants association, completed a “deep energy retrofit” that has slashed energy and water usage and drastically cut operating costs and utility bills paid by the owner and tenants. (A deep retrofit is an upgrade reducing prior energy usage by more than 50%.)

Another NMTC Funding Option: Foreign Investor Capital

7 min read

Low-cost capital raised from foreign investors under the federal “EB-5” program can help finance new markets tax credit (NMTC) projects, as illustrated by three real estate projects in Texas and Wisconsin.

Sigh of Relief: Fiscal Cliff Act Includes Housing, New Markets Credit Provisions

3 min read

The affordable housing, community development, and renewable energy industries received a boost with the inclusion of “extender” provisions in the American Taxpayer Relief Act signed into law by President Obama on January 2.

A Cloudy Crystal Ball: LIHTC Industry Hopeful for Return of Insurance Company Investors in 2013, Braced for Political Risks

9 min read

Low-income housing tax credit industry participants, buoyed after the recent legislative “fix” of the 9% credit rate, are cautiously optimistic about the outlook in 2013 for raising equity but anticipate political challenges nationally, according to interviews and speakers’ comments at a recent Washington, D.C. conference held by the National Council of State Housing Agencies.

New $100 Million Fund Links Affordable Housing, Health Care

3 min read

Morgan Stanley, The Kresge Foundation, and the Local Initiatives Support Corporation (LISC) have launched a pioneering new $100 million investment fund that will finance additional affordable rental housing and health care facilities for low-income households in an integrated fashion.

A Bright Picture: New Study Finds Solid Performance by LIHTC Properties

5 min read

Low-income housing tax credit (LIHTC) properties exhibited strong operating performance during 2008-2010 at the state-by-state level as well as overall nationally, according to a new study by CohnReznick LLP.

A Handy Guide: Tennessee Agency Releases Statewide Housing Needs Assessment Study

5 min read

Housing needs in Tennessee are widespread, diverse, and have intensified since 2000 despite significant resources devoted to assisting homeowners, renters, and others in the state, according to a comprehensive new statewide housing needs assessment study released by the Tennessee Housing Development Agency (THDA).

The RAD Experiment Begins: HUD Announces Initial Commitment Awards

6 min read

The U.S. Department of Housing and Urban Development has given initial approval to the first transactions under the new Rental Assistance Demonstration (RAD) program, committing to issue new long-term contracts providing federal project-based rent subsidies to properties once owners have finalized all their funding sources.

Good Times: Varied Debt Options, Low Borrowing Rates

9 min read

It may be hard to believe. But the present probably offers some of the most favorable borrowing rates ever for affordable rental housing developers and owners seeking debt for new projects or to refinance existing properties.

LIHTC Multi-Investor Fund Activity

4 min read

Boston Capital is on the street with a $157 million national multi-investor fund (7% projected yield) that is fully specified in properties and expected to close by March 31, after closing a $150 million national multi-investor fund (6.20%) in the fourth quarter of 2012, said executive Jeff Goldstein.

Celebrating Harlem: Unique New Markets Project to Offer Housing, Educational, Cultural Opportunities

4 min read

In the West Harlem section of New York City, the federal new markets tax credit is helping to finance the development of an $80 million mixed-use project that will contain affordable rental and supportive housing units, an early childhood center, and a unique children’s museum that celebrates the neighborhood’s history, bringing new housing and educational opportunities to a distressed community.

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