LIHTC 101: The Basics
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November 28, 2012
Wednesday: 9:00 a.m.- 4:00 p.m. |
Pre-Conference Workshop Registration Rates
$395 workshop only
$295 with conference registration
Agenda
Overview of the Low-Income Housing Tax Credit
- The need for affordable housing
- Tax credits bringing in investment
The Typical LIHTC Structure
- Developer, investor and syndicator
- Lower-tier operating partnership and upper-tier fund partnership
- Benefits: tax credits, losses, developer fees, syndication fees, etc.
The Project Time Line
- Forming the partnership
- Applying for credits
- Construction and lease-up
- Certificate of occupancy, Forms 8609 and claiming credits
Property Compliance
- Minimum set-aside
- Income limits and rent limits
- Tax credit period, compliance period and extended-use period
The Tax Credit Calculation
- Eligible basis, DDAs and QCTs, applicable fraction, qualified basis, tax credit percentages
Bond-Financed Projects
- Borrower, purchaser, issuer, underwriter, trustee, lender, credit enhancer, etc.
- The fifty-percent test
“Competitive” (9%) Projects vs. Bond-Financed (4%) Projects
- Financing fees, loan interest rates, rent limits, financing leverage, amenity costs, debt-to-equity ratio, etc.
Financing the Project
- Fluctuating tax credit percentages, changes in credit pricing
- Recent legislation: HERA, EESA and ARRA
- TCAP and 1602 Exchange gap funding
Lunch will be provided from 12:00 to 1:00
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