Novogradac Private Activity Bond and 4% Low-Income Housing Tax Credit Basics Webinar

Wednesday, February 20, 2013
1:00 p.m. - 3:00 p.m. Eastern Time (10:00 AM to Noon Pacific Time)

Attendee Feedback

"The presenters well prepared, handouts easy to follow, voices clear, pictures clear, just great!"
- Judith L. Smith, THDA

"The mystery of bonds has been somewhat clarified for me, which is a great success. Many 'light-bulbs' went on due to the presentation and the presenters' way of communicating information."
- Brian Shelton-Kelley, NeighborWorks Anchorage

"This is new information for me and I think the slides and explanations were excellent and easy enough for me to understand."
- Patricia Winter, Dworbell, Inc.

"Webinar pace and content done in an extremely efficient, understandable presentation, even for the first timer!"
- Traci Maxwell, Retirement Housing Foundation

"Very informative, good detail, charts very well done and shows the flow the projects follow. Great presenting also!"
- Carol S. Kowash, Oregon Housing and Community Services

"Great slides and answers. Thorough and informative."
- Adam McNutt, Silver Street Development Corp.

"There was a lot of information covered, but as long as you had a basic knowledge the flow went well and the organization between the host and panelists was great."
- Erin O'Neill, National Development Council

"I liked that you kept things easy to understand and everyone stayed on the topic."
- Maria G Rodriguez, Retirement Housing Foundation

"Very valuable info."
- Betty Temple, MS Home Corporation (HFA)

"I've learned how LIHTC and Bonds could work on my 2014 MFH Developments."
- Keith Walker, ECCDI


Wayne Michael, CPA
Director of Education and Business Development
Novogradac & Company LLP

Matthew Bissonette
Citi Community Capital

Justin Cooper
Partner - Public Finance
Orrick, Herrington & Sutcliffe LLP

Course Description

This course presents a basic overview of how development teams can use private activity bonds and 4% low-income housing tax credits (LIHTCs) to finance affordable multifamily rental housing properties.


  • Overview of affordable housing finance and need for debt and equity
  • Overview of public (tax-exempt) vs. private (taxable) bonds
  • Introduction to Internal Revenue Code Section 142(d) and private-activity tax-exempt bonds
  • Players in a bond transaction
    • Borrower, issuer, underwriter, purchasers, credit enhancer, lender, trustee, bond counsel
  • Bond financing timeline
  • Low-income housing tax credit calculation
  • Equity financing with 30% present value (4%) tax credits
  • The 50% test
  • Cost of issuance limitations
  • Good costs/bad costs (95-5 test)
  • Differences between Section 142(d) bond rules and Section 42 tax credit rules
  • Q&A

Target Audience

This course is designed for those who have a basic understanding of affordable housing and low-income housing tax credits (LIHTCs) as well as for those who’ve worked in the industry for a few years and are looking for a refresher or who've worked with 9% LIHTC deals but not 4% LIHTC/bond deals.

Continuing Professional Education

  • Objective: To understand how private-activity bonds and 4% low-income housing tax credits work together to finance multifamily rental housing properties
  • Level: Basic
  • Prerequisites: A basic understanding of affordable housing and the low-income housing tax credits program
  • Advance preparation required: None
  • Category: Tax
  • Credit hours: 2

In accordance with the standards of the National Registry of CPE Sponsors, CPE credits for this course are based on a 50-minute hour group-internet based instructional method.

Note: Multiple paid registrants within an organization may choose to watch the webinar on one screen. In situations where small groups view a webinar, in order for multiple members of the group to claim CPE credit it is not necessary for the individuals in the group to respond to polling questions individually. The person logged into the program may respond to the polling on behalf of the group; however, the monitoring of active participation of the individuals in the small group will be documented and verified by the small group administrator.

If you are watching the webinar in a group and wish to be eligible to claim CPE credit for multiple members of the group, please print and fill out the Small Group Sign-in Sheet and submit it to

Note also that although recordings of most webinars are available for purchase, unless specifically stated, CPE is NOT available for webinar recordings.

About the Instructors

Wayne Michael is the director of external education for Novogradac & Company LLP, specializing in simplifying complex industries and programs for audiences of varying levels of experience. Mr. Michael has created, edited or delivered hundreds of presentations for conferences, workshops, webinars and on-site training sessions relating to federal tax credit programs and other accounting concepts. Mr. Michael also hosts Novogradac's YouTube channel, whose videos have been viewed more than 150,000 times by tax credit professionals. Additionally, he is a principal contributor to the "Introduction to Low-Income Housing Tax Credits" booklet that is published by Novogradac. Mr. Michael obtained his degree in accounting from Brigham Young University. He is licensed as a certified public accountant in California, is a designee of the Novogradac Property Compliance Certification as well as a Housing Credit Certified Professional.

Matthew Bissonette is a director with Citi Community Capital (CCC) in New York. His background in affordable housing includes involvement in more than 250 multifamily housing bond financings throughout the country, totaling more than $2.5 billion. He has worked on virtually every major type of multifamily housing bond financing, including various conduit financing structures, FHA/GNMA, Fannie Mae, Freddie Mac and other credit-enhanced deals as well as numerous financings involving derivative structures. Mr. Bissonette is a frequent speaker on affordable housing finance. Before joining CCC, he was a director with RBC Capital Markets, working as an investment banker in the area of affordable housing bond finance. Before joining RBC Capital Markets in 2007, he was a partner with Eichner & Norris PLLC, a Washington, D.C.-based law firm specializing in affordable housing bond finance. Mr. Bissonette entered private practice after serving as assistant counsel at the Office of Advocacy, U.S. Small Business Administration, where he focused on federal and state securities law issues. He also has several years of legislative experience, having worked as assistant counsel for the U.S. House of Representatives Committee on Small Business, and as legislative assistant for a member of Congress. Mr. Bissonette graduated from the University of Virginia, where he received a bachelor's degree in economics. He received his juris doctor from the College of William and Mary School of Law, where he was a member of the Moot Court Board, Chief Justice of the Judicial Council and awarded the Marshall-Wythe Gambrell Professionalism Award. He is admitted to practice law in the District of Columbia, Virginia and Colorado.

Justin Cooper is chair of Orrick’s nationally prominent housing finance group. He has an active multifamily housing revenue bond practice in California and elsewhere in the western United States, serving as bond counsel, underwriter’s counsel and lender’s counsel. He acts as lead multifamily bond counsel for a number of California local agencies and for the California Housing Finance Agency. Justin also has significant experience representing lenders in workouts on defaulted multifamily housing bonds and loans, including overseeing foreclosures, and has represented banks and issuers in multifamily financings involving total return swaps, secured puts and other derivative-based products. In addition to his housing practice, Justin regularly serves as bond, underwriter's or bank counsel in connection with enterprise revenue bonds, lease revenue bonds, transportation financings and working capital financings. He is also author of "Multifamily Rental Housing: Financing with Tax-Exempt Bonds." Justin received a bachelor's degree (summa cum laude) from Dartmouth College in 1996 and graduated cum laude from Harvard Law School in 2001. His Twitter feed is @ohsjustincooper.

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Registrants who select the payment-by-check method whose payment has not been received before 22 hours prior to the broadcast will receive an e-mail notice that we cannot send their login information because check payment has not been received.  Registrants whose payments arrive subsequent to the live broadcast will be registered to view a recording of the broadcast, which does not provide CPE credit nor live interaction with the instructors.

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In the event of a major technological problem that prevents or interrupts our transmission of the webinar broadcast, such as a power outage at our broadcast site, we will either re-broadcast the webinar or issue registrants an event credit. Credits may be applied toward any Novogradac & Company LLP event and are valid for one year from the credit’s date of issuance.

Terms and Conditions

Except as explicitly stated in the program materials (if applicable), the webinar will not qualify attendees for any type of continuing education credit or certification issued by any organization.

As a condition of viewing the webinar, you must agree to the following terms and conditions (the “Terms”).  If you do not agree to the Terms, do not purchase this webinar.

Novogradac & Company LLP webinars are presented as general learning opportunities and are not a substitute for professional advice. You agree not to make business or financial decisions based solely on the webinar materials and you agree that we are not responsible for business or tax decisions made by webinar attendees based on the information provided by the instructors during the webinar. Each tax credit property has specific issues and circumstances associated with that property. Webinar attendees are strongly encouraged to consult their legal and/or tax advisors for advice specific to the attendee’s specific circumstances.


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Registration Rates*

Standard: $105
Not-for-Profit (NFP): $90
Multiple Registrations: $95 per person ($80 NFP)

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The recording of the webinar has expired and is no longer available for viewing.


Low-Income Housing Tax Credit Handbook,
2015 Edition



Tax-Exempt Bond Handbook,
2012 Edition