LIHTC 101: The Basics

Wednesday, November 30, 2016 - 9:00am to 4:00pm

« Back to Novogradac 2016 Tax Credit Housing Finance Conference

Cost with conference registration: $325
Workshop only: $425


8-9 a.m.Registration and Breakfast
9-9:50 a.m.Intro and Housekeeping, Affordable Housing Overview
  • Tenants, owners, investors, government, tax credits
9:50-10 a.m.Break
10-10:50 a.m.

How Tax Credits are Calculated (including 9% vs. 4% credits)

  • Total development costs, eligible basis, 30% basis boost, applicable fraction, qualified basis, tax credit percentages, 9% credit pool, annual credits, total credits

10:50-11 a.m.

Typical Ownership Structure and Project Timeline

  • Developer, syndicator, investor(s), upper-tier fund, lower-tier operating partnership, asset management, developer fees, credit pricing, equity, forming the partnership, lining up service providers, preparing forecast, applying for credits, state qualified allocation plans (QAPs), 10 percent test (9% deals)

Noon-1 p.m.Luncheon
1-1:50 p.m.

Project Timeline (Continued)

  • Tax-exempt, private activity bonds; typical bond transaction structure, 50 percent test (bond deals), finish construction, final cost certification, placed-in-service package, regulator agreement, Forms 8609, yearly audits and tax returns

1:50-2 p.m.Break
2-2:50 p.m.

Acq/Rehab Deals, Program Rules and Avoiding Recapture

  • Construction method, financing method, tax credit percentages quirk, 30% basis boost quirk, minimum set-asides (20-at-50 and 40-at-60), multi-building election, income limits, rent limits

2:50-3 p.m.Break
3-4 p.m.

Program Rules and Avoiding Recapture (Continued), Conclusion/Wrap-Up

  • Tax credit period vs. compliance period vs. extended use period, state inspections, Form 8823, earned vs. accelerated credits