LIHTC 202: Year 15 Overview

Wednesday, January 10, 2018 - 9:00am to 3:00pm

« Back to Novogradac 2018 Tax Credit Developers Conference

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

Prerequisite: Throughout the workshop there will be group break-out sessions where the panelist will compare the topics discussed to actual documents. Attendees are highly encouraged to bring copies of their partnership agreements and other documents related to Year 15 to use during the break-out sessions. 

Understanding your options under the partnership agreement
Discuss various purchase and sale options in partnership agreements, followed by a review of partnership documents to identify key language regarding right of first refusal, put option, call option, etc.

Agenda

*Agenda subject to change.

9-9:15 a.m.Yeary 15 Overview
9:15-9:30 a.m.

Capital Account Basics

  • Understanding capital accoutns and how they impact year 15 exits.

9:30-10:15 a.m.

Special rules for nonprofit right of first refusal

  • Discuss right of first refusal under IRC 42(i)(7)

10:15-10:50 a.m.

Understanding the economics of limited partner exit

  • Discuss key information needed to calculate gain/loss on exit, cash flow split, and exit taxes.  Review how capital accounts affect cash waterfall.  Case study will be provided, but please bring your own documents.
10:50-11 a.m.Break
11-11:30 a.m.

Understanding the economics of the limited partner exit (continued)

  • Discuss key information needed to calculate gain/loss on exit, cash flow split, and exit taxes.  Review how capital accounts affect cash waterfall.  Case study will be provided, but please bring your own documents.

11:30 a.m.-Noon

Buying property vs. buying LP partnership interest

  • Discuss the economics under various scenarios and how it can affect re-syndication.

Noon- 1 p.m.Lunch
1-1:30 p.m.

Early exit by limited partner

  • Discuss pros and cons of early exits and reasons why both parties may or may not want an early exit.

1:30-1:50 p.m.

Resyndication

  • Discuss 10-year hold rule, tack back rule, grandfathering tenants, and resetting rent & income limits in acq/rehab projects. 

1:50-2 p.m.Break
2-2:30 p.m.

Qualified Contracts

  • Brief 30,000 foot view of qualified contracts; and pros and cons of exercising qualified contract.

2:30-3 p.m.

Final Tips and Q&A

  • Discuss how to plan for a successful Year-15 transaction and questions you may have.