This course presents an overview of the major accounting concepts associated with the use of private activity bonds and 4 percent low-income housing tax credits (LIHTCs) to finance affordable multifamily rental housing properties.

Praise From Attendees

Duration: 2 hours

Instructors

Charlie Rhuda, CPA
Partner
Novogradac

Matt Lockhart, CPA
Principal
Novogradac

Wayne Michael, CPA, NPCC, HCCP
Senior Director of Education
Novogradac

Topics Covered

• 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
• LIHTC calculation
  • Eligible basis, applicable fraction, qualified basis, credit rate, annual credits
  • Locking credit rate
• Equity financing with 30 percent present value (4 percent) tax credits
• Understanding 9 percent vs. 4 percent programs
• The 50 percent test
  • Common pitfalls
  • Timing issues
  • Single vs. multi-building properties
  • Multi-year placed-in-service dates
• Good costs/bad costs (95-5 test)
  • Related-party considerations (e.g. developer fee)
  • Soft debt
  • Seller’s notes
• 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 percent LIHTC deals but not 4 percent LIHTC/bond deals.

Terms and Conditions
Receiving Login Info and Handouts

Registration Rates*

Standard: $125
Nonprofit: $110
Multiple Registrations: $110/person ($95/person for nonprofits)

*The standard and nonprofit registration fee for live online webinars and for webinar recordings covers a SINGLE VIEWER ONLY. If multiple persons within an organization wish to view the webinar and/or its recording (regardless of whether they view it on a single computer or multiple computers), the organization must purchase a registration for each person.