New Markets Tax Credits 101 Affordable Housing Finance Workshop February 14, 2013

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "New Markets Tax Credits 101 Affordable Housing Finance Workshop February 14, 2013"

Transcription

1 Affordable Housing Finance Workshop February 14, 2013 Al Shehadi Director, Originations Enterprise Community Investment, Inc.

2 Enterprise Community Investment, Inc. National community development financial intermediary Leading LIHTC syndicator BellwetherEnterprise (commercial mortgage finance) Enterprise Community Loan Fund (CDFI) Affordable housing developer One of largest NMTC allocatees ($672mm over 9 rounds) Closed >50 projects totaling $663mm in NMTC-enhanced financing

3 Enterprise NMTC Priorities New Markets Tax Credits 101 Focus on ten impact markets; key investor relationships 100% of projects in highly distressed census tracts Projects cannot proceed but for NMTC financing (efficient use of taxpayer dollars) High level of community benefit Corporate commitment to green Developer capacity and readiness to proceed

4 NMTC Background Created by Congress as part of the Community Renewal Tax Relief Act of 2000 Codified in Section 45D of the Internal Revenue Code Administered by CDFI Fund $33 bn total allocation to date (Note: allocation is not the same as tax credits) Reauthorized January 2013; 2 years, $3.5 bn each year.

5 NMTC Program Goals Encourage private investment in Low-Income Communities (LICs) Provide patient capital, at favorable rates and terms to projects that cannot proceed solely with market-rate financing Financing can be loans or equity Financing can be for operating businesses or real estate projects, taxable or tax-exempt entities

6 Basic Eligibility: Location Must be in a qualified census tract (low income): 20% or higher poverty rates Median family income < 80% AMI Preference given to projects in additionally distressed census tracts 30% or higher poverty rates Median family income < 60% AMI Unemployment 1.5x national ave Or two of additional criteria

7 Basic Eligibility: Location (con t) NMTC Mapping tools: Demographic data update Projects closing by 6/30 can use 2000 census data Thereafter, must use American Communities Survey (ACS) data

8 Basic Eligibility: Use Restrictions No sin businesses (liquor store, massage parlor, etc.) Substantial business activity in a LIC (not a P.O. box ) Must be an operating business (limits on cash reserves, collectibles, intangibles) Can t be certain farming businesses If real estate, must be non-residential Min 20% commercial income CDEs & investors usually want 30-50% commercial income

9 A Few Differences from LIHTC NMTC are allocated annually by the CDFI fund to Community Development Entities (CDEs) (not state HFAs) CDEs decide what projects to invest in Credits are generated by the amount of financing run through the CDE, not by investments in project-level basis Subsidy is shallow; does not drive project Business can be either a taxable or tax-exempt entity Full recapture risk!!!!

10 What is the NMTC Worth? Investors who invest in CDEs claim credit against federal income taxes (investment can t exceed available allocation) Credit is equal to 39% of QEI Credit claimed over 7 years (5%, 5%,5%, 6%, 6%, 6%, 6%) Credit not prorated take full first year credit regardless of when during year QEI is made Relatively shallow credit overall

11 A Little Fuzzy Math? $10 mm investment (requires $10mm allocation) $3.9 mm credit $0.78 price per NMTC $3.042 gross equity Fees & expenses, legal costs, consulting fees, bridge loan cost - $750k to $1.0mm $2.0 - $2.25 net equity

12 NMTC Strengths & Weaknesses Able to finance a broad range of commercial projects & businesses that provide community & economic benefits Provides a source of financing that generally does not have to be repaid at the end of the compliance period Scarcity Complexity & transaction costs Absence of replicable structures Regulatory & inter-creditor tensions

13 How the NMTC Works Credits are earned on a Qualified Equity Investment (QEI) in a Community Development Entity (CDE) which subsequently uses substantially all of the QEI proceeds to make Qualified Low-Income Community Investments (QLICIs) in Qualified Active Low-Income Community Businesses (QALICBs) located in Low-Income Communities (LICs) Everybody got that?

14 Leverage Structure Investor Leverage Lender $3 Equity $3.90 NMTC $7 Leverage Loan Leverage Investment Fund $10 QEI $3.90 NMTC CDE $7 QLICI A $3 QLICI B QALICB

15 Recommended NMTC Conferences NYC EDC Development Finance Conference (4/16/13; NYC) Reznick NMTC Summit (5/6-8/13; Miami) Novogradac NMTC Conference (6/5-7; Washington, DC) For the YouTube crowd: h?v=cjcpyrlwi74 h?v=q-tjuyfavow

16 Oxford Mills (Philadelphia) Adaptive reuse of 170,000 sf historic factory complex 114 units of mixed-income rental housing targeted to public school teachers (60% or 68 units below market) 40,202 sf office space for education/social service nonprofits 1,300 sf café & 39 surface parking spaces Co-developers: Seawall Development (Baltimore) D3 Development (Philadelphia)

17 Oxford Mills: Sources & Uses (in mm) Sources $17.80 TDB loan $10.21 TDB NMTC equity $ 6.36 TDB FHTC equity $ 0.51 Subordinate loan $ 1.50 Developer equity $ 3.60 Def d dev fee $39.98 NMTC Allocation $34 mm NMTC (3 CDEs) Uses $ 4.18 Acquisition $22.15 Construction $ 1.25 Contingency $ 1.64 Soft costs $ 2.30 Financing costs $ 2.36 NMTC fees/expense/legal $ 0.80 Reserves $ 5.30 Developer fee $39.98

18 Oxford Mills New Markets Tax Credits 101

19 1770 Tchoupitoulas St. (New Orleans) Adaptive reuse of 96,500 sf historic Lykes Steamship complex 52 units of mixed-income rental housing (25 market-rate; 80% AMI; 50% AMI) 12,634 sf food production space (including VOA program to train low-income persons to make healthy meals for public schools, nonprofit programs & others 41,000sf warehouse bldg (future development) Developer: RNDC (VOA affiliate)

20 1770 Tchoupitoulas: Sources & Uses (in mm) Sources $ 3.24 Iberia Bank loan $ 5.27 USB NMTC equity $ 2.63 USB FHTC equity $ 2.66 TCC SHTC equity $ 2.50 State loan $ 1.21 Grants $ 0.97 Developer equity $ 1.43 Def d dev fee $19.90 Uses $ 2.93 Acquisition $10.15 Construction $ 1.07 Contingency $ 1.28 Soft costs $ 0.30 Financing costs $ 1.33 NMTC fees/expense/legal $ 0.34 Reserves $ 2.50 Developer fee $19.90 NMTC Allocation $18.5 mm NMTC (2 CDEs)

21 1770 Tchoupitoulas New Markets Tax Credits 101

22 A Few Random Thoughts on NMTC Is one of the few broad commercial financing subsidies Demand far exceeds supply (10:1 or more) Subsidy is shallow But for test is and community benefits are important QALICB can be either a taxable or tax-exempt entity Transaction costs are expensive and not scalable Be prepared for time and complexity

23 Al Shehadi Director, Originations Enterprise Community Investment 27 Byram Shore Rd Greenwich, CT P: E:

NEW MARKETS TAX CREDIT PROGRAM SUMMARY

NEW MARKETS TAX CREDIT PROGRAM SUMMARY NEW MARKETS TAX CREDIT PROGRAM SUMMARY Introduction The New Markets Tax Credits (NMTC) program was enacted in December 2000 to facilitate investments that generate employment and other community benefits

More information

Introduction to the New Markets Tax Credit Program

Introduction to the New Markets Tax Credit Program COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND Introduction to the New Markets Tax Credit Program The CDFI Fund is an equal opportunity provider. PREPARED ON July 31, 2014 Presentation Roadmap Overview

More information

NMTC CENSUS DATA TRANSITION FAQS

NMTC CENSUS DATA TRANSITION FAQS NMTC CENSUS DATA TRANSITION FAQS 1. What does the census data transition mean for the New Markets Tax Credit (NMTC) Program?... 2 2. How will I be able to use the 2006-2010 ACS Low-Income Community data

More information

New Markets Tax Credit: An Introduction

New Markets Tax Credit: An Introduction Donald J. Marples Section Research Manager December 20, 2012 CRS Report for Congress Prepared for Members and Committees of Congress Congressional Research Service 7-5700 www.crs.gov RL34402 Summary The

More information

New Markets Tax Credits for Developers Presented by Tim Favaro, Esq. and Steven Weiss, Esq. Cannon Heyman & Weiss, LLP

New Markets Tax Credits for Developers Presented by Tim Favaro, Esq. and Steven Weiss, Esq. Cannon Heyman & Weiss, LLP New Markets Tax Credits for Developers Presented by Tim Favaro, Esq. and Steven Weiss, Esq. Cannon Heyman & Weiss, LLP I. Background a. Codified in Section 45D of the Internal Revenue Code, the New Markets

More information

BMLPA INNOVATIVE BUSINESS AND DEVELOPMENT FINANCING

BMLPA INNOVATIVE BUSINESS AND DEVELOPMENT FINANCING INNOVATIVE BUSINESS AND DEVELOPMENT FINANCING STATE AND FEDERAL NEW MARKETS TAX CREDITS Introduction Important Highlights Economic Boost to Qualified Projects of more than twenty percent (20%) of Project

More information

New Markets Tax Credits. A tool to finance renewable energy projects in Indian Country

New Markets Tax Credits. A tool to finance renewable energy projects in Indian Country New Markets Tax Credits A tool to finance renewable energy projects in Indian Country New Markets Tax Credits New Markets Tax Credits can be used to finance a wide range of community economic development

More information

Community Reinvestment Fund, USA

Community Reinvestment Fund, USA Community Reinvestment Fund, USA Presented by: Claudette Konola, Director, Manager Partner Services Community Reinvestment Fund, USA Using New Markets Tax Credits Introductions A national non-profit financial

More information

New Markets Tax Credits and the Chicago Development Fund

New Markets Tax Credits and the Chicago Development Fund New Markets Tax Credits and the Chicago Development Fund Lorman Education Services Update on Incentives for Real Estate Development August 30, 2007 Tony Q. Smith, AICP S. B. Friedman & Company Discussion

More information

Community Development Financial Institutions Fund. New Markets Tax Credit CDE Certification Glossary of Terms

Community Development Financial Institutions Fund. New Markets Tax Credit CDE Certification Glossary of Terms Community Development Financial Institutions Fund New Markets Tax Credit CDE Certification Glossary of Terms GLOSSARY OF TERMS Affiliate Allocation Agreement Applicant CDE Authorized Representative CDE

More information

GAO NEW MARKETS TAX CREDIT. The Credit Helps Fund a Variety of Projects in Low-Income Communities, but Could Be Simplified

GAO NEW MARKETS TAX CREDIT. The Credit Helps Fund a Variety of Projects in Low-Income Communities, but Could Be Simplified GAO United States Government Accountability Office Report to Congressional Committees January 2010 NEW MARKETS TAX CREDIT The Credit Helps Fund a Variety of Projects in Low-Income Communities, but Could

More information

What is a Community Development Entity?

What is a Community Development Entity? Overview What are New Markets Tax Credits? > First federal tax credit program to stimulate commercial investment in low-income communities > The program is administered by the US Treasury Department through

More information

Community Investments Vol 15, Issue 2 Making the New Markets Tax Credit Count

Community Investments Vol 15, Issue 2 Making the New Markets Tax Credit Count Community Investments Vol 15, Issue 2 Making the New Markets Tax Credit Count Author(s): Robert Rapoza, President, Rapoza Associates August 2003 The New Markets Tax Credit (NMTC) program was enacted in

More information

New Markets Tax Credit Program Overview

New Markets Tax Credit Program Overview New Markets Tax Credit Program Overview Presented to May 5, 2014 Agenda The TD Community Development Corporation Team New Markets Tax Credit Program New Markets Tax Credit Program & Legislative Update

More information

The New Markets Tax Credit Program

The New Markets Tax Credit Program Investing in Distressed Communities The New Markets Tax Credit Program A CohnReznick White Paper JANUARY 2010 Investing in Distressed Communities The New Markets Tax Credit Program by Gary Perlow, CPA,

More information

Pre-Conference Workshop Historic Tax Credits 101: The Basics

Pre-Conference Workshop Historic Tax Credits 101: The Basics Pre-Conference Workshop Historic Tax Credits 101: The Basics Moderator Thomas Boccia Novogradac & Company LLP Panelists Christina Apostolidis Novogradac & Company LLP Frank Buss Novogradac & Company LLP

More information

Tax Credit Financing Tools for Real Estate Development and Redevelopment

Tax Credit Financing Tools for Real Estate Development and Redevelopment Tax Credit Financing Tools for Real Estate Development and Redevelopment Alexander J. Szilvas and Nathan F. Ware February 24, 2015 Speaker Biographies Alexander J. Szilvas Alex has practiced law at Baker

More information

Community Development Financial Institutions (CDFI) Fund

Community Development Financial Institutions (CDFI) Fund Community Development Financial Institutions (CDFI) Fund Leveraging Federal Resources for Community Development: Greg Bischak, CDFI Fund, 2010 National Interagency Community Reinvestment Conference, New

More information

New Market Tax Credits

New Market Tax Credits New Market Tax Credits Sample NMTC Financing Structures Unleveraged Direct funding to CDE from the NMTC investor CDE in turn provides financing (debt and/or equity) to QALICB Advantages: simpler and may

More information

NEW MARKETS TAX CREDIT PROGRAM: Subsidized Rate Model. 2008 National Interagency Community Reinvestment Conference April 2008

NEW MARKETS TAX CREDIT PROGRAM: Subsidized Rate Model. 2008 National Interagency Community Reinvestment Conference April 2008 NEW MARKETS TAX CREDIT PROGRAM: Subsidized Rate Model 2008 National Interagency Community Reinvestment Conference April 2008 JPMorgan Chase and the NMTC Program JPMorgan Chase is an active leader in the

More information

New Markets Tax Credit

New Markets Tax Credit New Markets Tax Credit Compliance and Monitoring Frequently Asked Questions September 2011 TABLE OF CONTENTS This document adds, revises and updates select questions from the May 2009 edition of the New

More information

NH&RA Summer Institute and NMTC Symposium

NH&RA Summer Institute and NMTC Symposium NH&RA Summer Institute and NMTC Symposium The NMTC Exit Miriam Vock Sheehan: Nolan Sheehan Patten LLP Moderator Mark Einstein: Reznick Group Stephanie Barrett: Bank of America David Trevisani: National

More information

USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School

USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School Berkshire Arts & Technology Public Charter School Adams, MA The BArT Charter School opened its doors in the fall of 2004

More information

Insights. Community Developments. New Markets Tax Credits: Unlocking Investment Potential. February 2007. Abstract:

Insights. Community Developments. New Markets Tax Credits: Unlocking Investment Potential. February 2007. Abstract: Comptroller of the Currency Administrator of National Banks US Department of the Treasury Community Developments February 2007 Community Affairs Department New Markets Tax Credits: Unlocking Investment

More information

LISC s New Markets Tax Credit Program (Frequently Asked Questions)

LISC s New Markets Tax Credit Program (Frequently Asked Questions) LISC s New Markets Tax Credit Program (Frequently Asked Questions) General Questions about the New Markets Tax Credit Program What Are New Markets Tax Credits (NMTCs)? What Is A Qualified Active Low-Income

More information

Audit Report. Office of Inspector General. Department of the Treasury. November 15, 2006

Audit Report. Office of Inspector General. Department of the Treasury. November 15, 2006 Audit Report OIG-07-011 Audit of the Community Development Financial Institutions Fund's Fiscal Years 2006 and 2005 Financial Statements November 15, 2006 Office of Inspector General Department of the

More information

USDA & NMTCs: An Uneasy Alliance. Nicolo Pinoli. John Berdes. Jordan Monsour. Novogradac & Company LLP. Craft3. Butler Snow

USDA & NMTCs: An Uneasy Alliance. Nicolo Pinoli. John Berdes. Jordan Monsour. Novogradac & Company LLP. Craft3. Butler Snow USDA & NMTCs: An Uneasy Alliance Nicolo Pinoli Novogradac & Company LLP John Berdes Craft3 Jordan Monsour Butler Snow Business & Industry Guaranteed Loan Program Biorefinery Assistance Program USDA RD

More information

Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Notices

Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Notices 64495 accordance with General Record Schedule 9, Item 7. Source documents provided to DOT by its Federal agencies customers are considered temporary records and are destroyed not more than 120 after of

More information

A Guide to Federal Tax Incentives for Brownfields Redevelopment

A Guide to Federal Tax Incentives for Brownfields Redevelopment A Guide to Federal Tax Incentives for Brownfields Redevelopment 2011 Edition ii Brownfields Federal Programs Guide Table of Contents Introduction..................................................................................................1

More information

Combining Tax Exempt, Short-Term Bonds with Taxable GNMA Sale and 4% LIHTCs for Affordable Apartment Financings

Combining Tax Exempt, Short-Term Bonds with Taxable GNMA Sale and 4% LIHTCs for Affordable Apartment Financings SWAC Southwest LIHTC Workshop Dallas, TX September 22, 2015 Combining Tax Exempt, Short-Term Bonds with Taxable GNMA Sale and 4% LIHTCs for Affordable Apartment Financings Kent Neumann, Esq. Partner Eichner

More information

Affordable Housing: LIHTC Accounting Overview. July 30, 2014

Affordable Housing: LIHTC Accounting Overview. July 30, 2014 Affordable Housing: LIHTC Accounting Overview July 30, 2014 Tax Credits 101 TOPIC Welcome and Overview Project Proforma Roles, Motivations and Responsibilities of Developer and Investor 10% Test 50% Test

More information

Working Paper. Addressing the Prevalence of Real Estate Investments in the New Markets Tax Credit Program FEDERAL RESERVE BANK OF SAN FRANCISCO

Working Paper. Addressing the Prevalence of Real Estate Investments in the New Markets Tax Credit Program FEDERAL RESERVE BANK OF SAN FRANCISCO 2008-04 Community Development INVESTMENT CENTER Working Paper FEDERAL RESERVE BANK OF SAN FRANCISCO Addressing the Prevalence of Real Estate Investments in the New Markets Tax Credit Program A Study Conducted

More information

Dallas Development Fund/New Markets Tax Credit Program Update

Dallas Development Fund/New Markets Tax Credit Program Update Dallas Development Fund/New Markets Tax Credit Program Update September 21, 2015 Economic Development Committee Office of Economic Development dallas-ecodev.org Briefing Purpose Summarize key elements

More information

IRS. New Markets Tax Credit. Internal Revenue Service. Department of the Treasury. Internal Revenue Service. LMSB-04-0510-016 (May 2010)

IRS. New Markets Tax Credit. Internal Revenue Service. Department of the Treasury. Internal Revenue Service. LMSB-04-0510-016 (May 2010) Internal Revenue Service New Markets Tax Credit Under no circumstances should the contents of this guide be used or cited as authority for setting or sustaining a technical position. IRS Department of

More information

Insights. Community Developments. New Markets Tax Credits: Unlocking Investment Potential. Abstract. I. What Is the New Markets Tax Credit Program?

Insights. Community Developments. New Markets Tax Credits: Unlocking Investment Potential. Abstract. I. What Is the New Markets Tax Credit Program? Office of the Comptroller of the Currency Washington, DC 20219 JUNE 2013 Community Developments Community Affairs Department Insights New Markets Tax Credits: Unlocking Investment Potential Abstract This

More information

Community Development Financial Institutions (CDFIs) Participation in the New Markets Tax Credit (NMTC) Program.

Community Development Financial Institutions (CDFIs) Participation in the New Markets Tax Credit (NMTC) Program. Community Development Financial Institutions (s) Participation in the New Markets Tax Credit (NMTC) Program. A Coalition Analysis of the First Three Rounds of New Markets Tax Credit Allocations June 2005

More information

4.17.2 Project Sponsor The Project Sponsor must be in good standing with all Commission programs and policies.

4.17.2 Project Sponsor The Project Sponsor must be in good standing with all Commission programs and policies. EXISTING LANGUAGE: 4.17 REQUIREMENTS FOR REHABILITATION PROJECTS A Rehabilitation Project is defined as existing use-restricted housing that consists of the rehabilitation of 80% or more of the housing

More information

MHIC New Market Tax Credits Audit & Tax Preparation Workshop

MHIC New Market Tax Credits Audit & Tax Preparation Workshop 1 MHIC New Market Tax Credits Audit & Tax Preparation Workshop Accounting Tax Business Advisors Scott Backman Deputy Director Asset Management Jeffrey D. Wadovick, CPA, MST Partner Michael Olson Senior

More information

APPENDIX 6: FUNDING SOURCES MATRIX

APPENDIX 6: FUNDING SOURCES MATRIX APPENDIX 6: ING S MATRIX NAME FEDERAL S Assisted Living Conversion Program (ALCP) Community Development Block Grant (CDBG) Energy Efficiency and Conservation Block Grants (EECBG) Green Retrofit Program

More information

Financing for Biogas Projects. Biogas Financing: Options, Steps, Steps, and and Resources Resources for Biogas for Biogas Project Development

Financing for Biogas Projects. Biogas Financing: Options, Steps, Steps, and and Resources Resources for Biogas for Biogas Project Development Financing for Biogas Projects Biogas Financing: Options, Steps, Steps, and and Resources Resources for Biogas for Biogas Project Development Project Development September 14, September 2011 14, 2011 Hurdles

More information

NMTC SERVICES. Knowledge Experience Service

NMTC SERVICES. Knowledge Experience Service NMTC SERVICES An established leader in the new markets tax credit industry with expert technical knowledge of key transaction structuring, accounting and compliance issues. Knowledge Experience Service

More information

Community Investments Vol 15, Issue 2 The Story of Phoenix's NMTC Allocation

Community Investments Vol 15, Issue 2 The Story of Phoenix's NMTC Allocation Community Investments Vol 15, Issue 2 The Story of Phoenix's NMTC Allocation Author(s): Roberto Franco, Vice President, Phoenix Community Development and Investment Corporation August 2003 Phoenix is honored

More information

BUILDING COMMUNITIES. Knowledge. Service. Experience. Unparalleled Leadership in the Complex and Multifaceted World of New Markets Tax Credits

BUILDING COMMUNITIES. Knowledge. Service. Experience. Unparalleled Leadership in the Complex and Multifaceted World of New Markets Tax Credits BUILDING COMMUNITIES Knowledge. Service. Experience. Unparalleled Leadership in the Complex and Multifaceted World of New Markets Tax Credits About the Firm Novogradac & Company LLP has advised its clients

More information

Neighborhood Lending Partners, Inc. Florida Minority Affordable Housing Development Fund Presentation Florida Housing Coalition September 9, 2014

Neighborhood Lending Partners, Inc. Florida Minority Affordable Housing Development Fund Presentation Florida Housing Coalition September 9, 2014 Neighborhood Lending Partners, Inc. Florida Minority Affordable Housing Development Fund Presentation Florida Housing Coalition September 9, 2014 Overview Neighborhood Lending Partners Certified as a CDFI-providing

More information

Step 6: Program Compliance

Step 6: Program Compliance The NMTC Roadmap Step 6: Program Compliance A CohnReznick White Paper FEBRUARY 2013 The NMTC Roadmap Step 6: Program Compliance The Elements of Compliance The New Market Tax Credit (NMTC) Allocation Application

More information

Novogradac Report on Tax Credits Summary: June 29, 2010

Novogradac Report on Tax Credits Summary: June 29, 2010 Michael J. Novogradac, CPA, shares and update on tax extenders legislation, reviews the NMTC Coalition s Progress Report 2010, announces new guidance for the Section 1603 renewable energy tax credit cash

More information

LOW-INCOME HOUSING TAX CREDIT PROGRAM OVERVIEW

LOW-INCOME HOUSING TAX CREDIT PROGRAM OVERVIEW LOW-INCOME HOUSING TAX CREDIT PROGRAM OVERVIEW September 2015 TAX CREDIT OVERVIEW The credit is a 10-year tax incentive to encourage the development of residential rental housing at or below 60% of area

More information

Making QLICIs under $5 Million work LISC small business loan fund. January 2012

Making QLICIs under $5 Million work LISC small business loan fund. January 2012 Making QLICIs under $5 Million work LISC small business loan fund January 2012 LISC/Morgan Stanley Small Business Loan Fund The goal of the fund is to provide low-cost, long-term financing to small businesses

More information

Financing Resources for Community Health Centers February 12, 2014

Financing Resources for Community Health Centers February 12, 2014 Financing Resources for Community Health Centers February 12, 2014 Presented by Emily Chen, Director, Health Center Lending & Healthy Futures Fund Victor Abla, Director, Lending, Detroit LISC Robert Poznanski,

More information

Using Federal Tax Credits to Help Finance Rehabilitation in Downtown Miami

Using Federal Tax Credits to Help Finance Rehabilitation in Downtown Miami Using Federal Tax Credits to Help Finance Rehabilitation in Downtown Miami NTCIC: A brief history Organized as a for profit, wholly-owned subsidiary of the National Trust for Historic Preservation in August

More information

HOUSING FINANCE AND LOW-INCOME HOUSING TAX CREDITS. September 2012 With gratitude to Kathleen Foster

HOUSING FINANCE AND LOW-INCOME HOUSING TAX CREDITS. September 2012 With gratitude to Kathleen Foster BASIC AFFORDABLE HOUSING FINANCE AND LOW-INCOME HOUSING TAX CREDITS September 2012 With gratitude to Kathleen Foster Public Housing Finance Today Conventional Public Housing Finance: Capital and operating

More information

A Closer Look: Our Mission-critical Targeted Affordable Housing Business

A Closer Look: Our Mission-critical Targeted Affordable Housing Business A Closer Look: Our Mission-critical Targeted Affordable Housing Business Freddie Mac Multifamily s commitment to promote rental housing affordability is rooted in our public mission and our DNA. The vast

More information

Where to Get Credits in Today s Market

Where to Get Credits in Today s Market Where to Get Credits in Today s Market Austin, Texas July 28, 2015 Ben A. Dupuy This document shall not constitute an offer to sell or the solicitation of any offer to buy securities... (202) 253-2063

More information

Low Income Housing Tax Credit Program

Low Income Housing Tax Credit Program Low Income Housing Tax Credit Program By Ed Gramlich, Director of Regulatory Affairs, National Low Income Housing Coalition Administering Agency: Internal Revenue Service (IRS) of the Department of the

More information

Master Leases In Financing Transactions

Master Leases In Financing Transactions Print View of http://www.abanet.org/rppt/publications/ereport/2006/2/snydermasterleas... Page 1 of 4 Print This Page Close Window Articles Master Leases In Financing Transactions Douglas P. Snyder This

More information

MSSP. Market Segment Specialization Program. Low-Income Housing Credit

MSSP. Market Segment Specialization Program. Low-Income Housing Credit MSSP Market Segment Specialization Program Low-Income Housing Credit The taxpayer names and addresses shown in this publication are hypothetical. They were chosen at random from a list of names of American

More information

NlXONPEABODYaP. Suite 900 401 9th Street, N.W. Washington, D.C. 20004-2128 (202) 585-8000 Fax: (202)585-8080

NlXONPEABODYaP. Suite 900 401 9th Street, N.W. Washington, D.C. 20004-2128 (202) 585-8000 Fax: (202)585-8080 NlXONPEABODYaP A T T O R N E Y S AT LAW Suite 900 401 9th Street, N.W. Washington, D.C. 20004-2128 (202) 585-8000 Fax: (202)585-8080 THE LOW-INCOME HOUSING TAX CREDIT PROGRAM By: Richard S. Goldstein,

More information

New Markets Tax Credits and EB-5: Combining Two Programs for One Goal

New Markets Tax Credits and EB-5: Combining Two Programs for One Goal New Markets Tax Credits and EB-5: Combining Two Programs for One Goal Justin G. Persaud I. Introduction... 249 II. NMTC Background and Regulatory Structure... 251 A. Basic NMTC Transaction...252 B. Low-Income

More information

An Introduction to the Community Reinvestment Act. John Meeks Atlanta Region FDIC Community Affairs

An Introduction to the Community Reinvestment Act. John Meeks Atlanta Region FDIC Community Affairs An Introduction to the Community Reinvestment Act John Meeks Atlanta Region FDIC Community Affairs What is the CRA? CRA stands for: The Community Reinvestment Act of 1977 revised in 1989, 1995, and 2005.

More information

Funding Sources for Housing Development

Funding Sources for Housing Development CHAPTER 7 Funding Sources for Housing Development Conway Pines, Conway Although funding is not the only solution to housing issues in New Hampshire, it is part of the answer. The production of new affordable

More information

Highlights of Allocation Round

Highlights of Allocation Round Highlights of Allocation Round 14 2011 New Markets Tax Credit Program Allocation: Ninth Round Highlights On February 23, 2012, the Community Development Financial Institutions Fund (CDFI Fund) announced

More information

Housing Tax Credit Essentials

Housing Tax Credit Essentials Housing Tax Credit Essentials 1 Background Part of 1986 Tax Reform to encourage the construction and rehabilitation of low-income rental housing Contained in Section 42 of the tax code Emphasis on private

More information

New. Markets. Tax. Credit. Program COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND U.S. DEPARTMENT OF THE TREASURY FORM CDFI-0019

New. Markets. Tax. Credit. Program COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND U.S. DEPARTMENT OF THE TREASURY FORM CDFI-0019 New Markets Tax Credit Program C O M M U N I T Y D E V E L O P M E N T E N T I T Y CERTIFICATION APPLICATION OMB APPROVAL NO. 1559-0014 REV. MAY 2003 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND ENTERPRISE

More information

Tax Exempt Bond Financing For Affordable Housing Projects

Tax Exempt Bond Financing For Affordable Housing Projects Tax Exempt Bond Financing For Affordable Housing Projects April 9, 2015 Sujyot S. Patel Partner Dinsmore & Shohl LLP (513) 639-9256 Sujyot.patel@dinsmore.com Lewis Diaz Partner Dinsmore & Shohl LLP (513)

More information

NEW MEXICO FINANCE AUTHORITY NEW MARKETS TAX CREDIT PROGRAM LENDING AND CREDIT POLICIES

NEW MEXICO FINANCE AUTHORITY NEW MARKETS TAX CREDIT PROGRAM LENDING AND CREDIT POLICIES NEW MEXICO FINANCE AUTHORITY NEW MARKETS TAX CREDIT PROGRAM LENDING AND CREDIT POLICIES A. PURPOSE The New Mexico Finance Authority ( NMFA ) is granted broad authority to finance projects that stimulate

More information

Instructions for Form 8609 (Rev. December 2013)

Instructions for Form 8609 (Rev. December 2013) Instructions for Form 8609 (Rev. December 2013) Low-Income Housing Credit Allocation and Certification Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue

More information

Lending is a tricky business. It s a delicate balance between helping someone and pushing them off the

Lending is a tricky business. It s a delicate balance between helping someone and pushing them off the Lending is a tricky business It s a delicate balance between helping someone and pushing them off the cliff Virginia Community Capital and the June 18, 2008 2 Lending is a dangerous business. Even though

More information

Recently Expired Community Assistance- Related Tax Provisions ( Tax Extenders ): In Brief

Recently Expired Community Assistance- Related Tax Provisions ( Tax Extenders ): In Brief - Related Tax Provisions ( Tax Extenders ): In Brief Sean Lowry Analyst in Public Finance August 24, 2015 Congressional Research Service 7-5700 www.crs.gov R43541 Contents Introduction... 1 New Markets

More information

Community Developments

Community Developments Office of the Comptroller of the Currency Washington, DC 20219 MARCH 2014 [Revised APRIL 2014] Community Developments COMMUNITY AFFAIRS DEPARTMENT Insights Low-Income Housing Tax Credits: Affordable Housing

More information

THE FEDERAL LOW-INCOME HOUSING TAX CREDIT AND HISTORIC REHABILITATION TAX CREDIT

THE FEDERAL LOW-INCOME HOUSING TAX CREDIT AND HISTORIC REHABILITATION TAX CREDIT THE FEDERAL LOW-INCOME HOUSING TAX CREDIT AND HISTORIC REHABILITATION TAX CREDIT This outline provides an overview of the federal low-income housing tax credit and historic rehabilitation tax credit. I.

More information

A BRIEF DESCRIPTION OF LOW-INCOME HOUSING TAX CREDITS. Joseph P. McCarthy

A BRIEF DESCRIPTION OF LOW-INCOME HOUSING TAX CREDITS. Joseph P. McCarthy A BRIEF DESCRIPTION OF LOW-INCOME HOUSING TAX CREDITS Joseph P. McCarthy The Low-Income Housing Tax Credit is a federal income tax credit that is available each year for ten years and results in a dollar-for-dollar

More information

FHA TAX CREDIT PILOT LOAN COMMITTEE (PLC) GUIDE As Of February 2014

FHA TAX CREDIT PILOT LOAN COMMITTEE (PLC) GUIDE As Of February 2014 FHA TAX CREDIT PILOT LOAN COMMITTEE (PLC) GUIDE As Of February 2014 I. Background This document provides an overview of the responsibilities, procedures, composition and authority of the Tax Credit Pilot

More information

FINANCING PROJECTS WITH ACRONYMS!

FINANCING PROJECTS WITH ACRONYMS! 15746499.1 FINANCING PROJECTS WITH ACRONYMS! IDBs, NMTC, EB-5, and More! Daniel M. McRae, Partner Seyfarth Shaw LLP 1075 Peachtree Street, N.E. Suite 2500 Atlanta, GA 30309 404.888.1883 404.892.7056 fax

More information

Dan Carmody / Gery Ferguson

Dan Carmody / Gery Ferguson Real Estate Financing Part Two Filling Gaps / Completing Projects IDA Institute New Orleans, LA February 1, 2009 Gary Ferguson Downtown Ithaca Ithaca, New York Dan Carmody Eastern Market Corporation Detroit,

More information

Community Development Financial Institutions Fund 2008 NMTC Program Recovery Act Awards

Community Development Financial Institutions Fund 2008 NMTC Program Recovery Act Awards THE DEPARTMENT OF THE TREASURY 1789 Community Development Financial Institutions Fund 2008 NMTC Program Recovery Act Awards TABLE OF CONTENTS List of Allocations 5 Overview of Allocations 11 States Served

More information

Washington, D.C. Why care about the cost of renewable energy and energy efficiency? Want the United States to have

Washington, D.C. Why care about the cost of renewable energy and energy efficiency? Want the United States to have Why care about the cost of renewable energy and energy efficiency? Want the United States to have Cleanest power generation possible. Most efficient energy consumption possible. Clean energy must be cheaper

More information

White Paper. LIHTC Apartments Mortgage Risk Why They Do Not Default. By George Vine, CFA

White Paper. LIHTC Apartments Mortgage Risk Why They Do Not Default. By George Vine, CFA White Paper LIHTC Apartments Mortgage Risk Why They Do Not Default By George Vine, CFA Introduction People generally know that LIHTC mortgages (first mortgages on low income housing tax creditfinanced

More information

Creating More Affordable Housing in Chicago

Creating More Affordable Housing in Chicago Creating More Affordable Housing in Chicago The Home Builders Association of Greater Chicago (HBAGC) supports increasing the availability of affordable housing in the City of Chicago and strongly encourages

More information

BASIC AFFORDABLE HOUSING FINANCE USING LOW-INCOME HOUSING TAX CREDITS. Presentation for Housing Works Conference November 13, 2015

BASIC AFFORDABLE HOUSING FINANCE USING LOW-INCOME HOUSING TAX CREDITS. Presentation for Housing Works Conference November 13, 2015 BASIC AFFORDABLE HOUSING FINANCE USING LOW-INCOME HOUSING TAX CREDITS Presentation for Housing Works Conference November 13, 2015 1 Overview Private Finance Paradigm: The Affordable Housing Development

More information

LISC Small Business Loan Fund

LISC Small Business Loan Fund LISC Small Business Loan Fund P R E S E N T E D BY: K EN ROSENTHAL CDC S M A L L B U S I N E S S F I NA N C E Kevin Boes LISC N e w M a r ke t s S u p p o r t C o m p a ny LISC Small Business Loan Fund

More information

EVALUATION OF BANK/CDFI PARTNERSHIP OPPORTUNITIES

EVALUATION OF BANK/CDFI PARTNERSHIP OPPORTUNITIES IV. EVALUATION OF BANK/CDFI PARTNERSHIP OPPORTUNITIES Banks should carefully review prospective relationships with CDFIs. In particular, they should evaluate the CDFI s service area relative to the bank

More information

FEDERAL AND STATE HOUSING TAX CREDIT PROGRAMS

FEDERAL AND STATE HOUSING TAX CREDIT PROGRAMS CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE 915 Capitol Mall, Suite 485 MEMBERS Sacramento, CA 95814 JOHN CHIANG, CHAIRMAN p (916) 654-6340 State Treasurer f (916) 654-6033 BETTY YEE ctcac@treasurer.ca.gov

More information

TIF For Affordable Housing

TIF For Affordable Housing TIF For Affordable Housing Presented to Governor s Conference on Affordable Housing Stephen B. Friedman, President How TIF Works 1 Eligibility Basics Blight, Conservation, or Vacant Land Factors 13 Factors

More information

Incentives Plenary Session 2013 SEDC Annual Conference. August 06, 2013

Incentives Plenary Session 2013 SEDC Annual Conference. August 06, 2013 Incentives Plenary Session 2013 SEDC Annual Conference August 06, 2013 Samuel V.K. Lee Principal svklee@euclidean5.com 312.841.1474 Trend in Tax Credits & Incentives, from a consultant s viewpoint Loca%on

More information

WASHINGTON TAX UPDATE

WASHINGTON TAX UPDATE WASHINGTON TAX UPDATE OCTOBER 24, 2012 Welcome to Washington Tax Update, where you will find useful information about taxes, including current events in our nation s capital, as well as informed opinions

More information

TMF: The Proven Model for Texas Business and Community Development. Celebrating 10 years: TMF Statewide Impact

TMF: The Proven Model for Texas Business and Community Development. Celebrating 10 years: TMF Statewide Impact TMF: The Proven Model for Texas Business and Community Development Business loans for growth-oriented businesses with needs that may qualify for only partial financing through traditional lending institutions.

More information

Federal Housing Assistance Programs

Federal Housing Assistance Programs National Coalition for the Homeless 2201 P. St. NW Washington, DC 20037 Phone: (202) 462-4822 Fax: (202) 462-4823 Email: info@nationalhomeless.org Website: http://www.nationalhomeless.org Federal Housing

More information

THE IRS VIEW OF JOINT VENTURES INVOLVING TAX- EXEMPTS IN TODAY S CLIMATE

THE IRS VIEW OF JOINT VENTURES INVOLVING TAX- EXEMPTS IN TODAY S CLIMATE THE IRS VIEW OF JOINT VENTURES INVOLVING TAX- EXEMPTS IN TODAY S CLIMATE MICHAEL I. SANDERS As the U.S. and global economies continue to recover slowly from the Great Recession, charities are receiving

More information

DCA s Affordable Rental Housing Program

DCA s Affordable Rental Housing Program DCA s Affordable Rental Housing Program Presented by: David Bartlett Office of Affordable Housing Program Objective Create and preserve quality,affordable rental housing where it s most needed Augusta

More information

DEVELOPMENT FINANCE DIVISION APPLICATION GENERAL INFORMATION

DEVELOPMENT FINANCE DIVISION APPLICATION GENERAL INFORMATION DEVELOPMENT FINANCE DIVISION APPLICATION GENERAL INFORMATION FINANCING FORM 202 Funding Applied For Housing Production Trust Fund $ - Low-Income Housing Tax Credit (LIHTC) $ - Department of Mental Health

More information

Florida Community Loan Fund, Inc. Resources for Non-Profits

Florida Community Loan Fund, Inc. Resources for Non-Profits Florida Community Loan Fund, Inc. Resources for Non-Profits September 11, 2012 3:45pm About FCLF FCLF is a statewide federally certified Community Development Financial Institution (CDFI). Founded in 1994

More information

Business credits and incentives: 15 programs you need to know about today

Business credits and incentives: 15 programs you need to know about today Business credits and incentives: 15 programs you need to know about today June 6, 2013 Today s presenters Tom Windram Partner Washington National Tax tom.windram@mcgladrey.com Mark Blawas Director State

More information

Summary: February 16, 2016

Summary: February 16, 2016 In this week s Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, begins with the general news section, where he provides a detailed description of the president s proposed budget for fiscal year

More information

OPPORTUNITIES TO REDUCE EFFECTIVE TAX RATE OF GEORGIA PREMIUM TAX

OPPORTUNITIES TO REDUCE EFFECTIVE TAX RATE OF GEORGIA PREMIUM TAX OPPORTUNITIES TO REDUCE EFFECTIVE TAX RATE OF GEORGIA PREMIUM TAX (FORC Journal: Vol. 25 Edition 1 - Spring 2014) Tony Roehl, Esq. (404) 495-8477 The insurance industry views premium taxes as an inevitable

More information

2013 North Carolina Affordable Housing Conference Raleigh Convention Center Raleigh, NC. September 10 11, 2013

2013 North Carolina Affordable Housing Conference Raleigh Convention Center Raleigh, NC. September 10 11, 2013 x 10 years Section 42 Tax Liability Investor Low Income Housing Tax Credit DEBT DEBT Partnership LLC S-Corp Equity Bonds Tax Liability Developer/ Owner Total Project Costs Total Project Costs Equity Participation

More information

LOW-INCOME HOUSING TAX CREDIT

LOW-INCOME HOUSING TAX CREDIT United States Government Accountability Office Report to the Chairman, Committee on the Judiciary, U.S. Senate July 2015 LOW-INCOME HOUSING TAX CREDIT Joint IRS-HUD Administration Could Help Address Weaknesses

More information

Federal Deposit Insurance Corporation. Office of the Comptroller of the Currency. Federal Reserve Bank of San Francisco. Office of Thrift Supervision

Federal Deposit Insurance Corporation. Office of the Comptroller of the Currency. Federal Reserve Bank of San Francisco. Office of Thrift Supervision Large Institution CRA Examination Roy Durnal Federal Deposit Insurance Corporation Rob Birnbaum Office of the Comptroller of the Currency Kelly Walsh Federal Reserve Bank of San Francisco Neil Kwatinetz

More information

FUNDING OPPORTUNITY TITLE: Notice of Guarantee Availability (NOGA) inviting

FUNDING OPPORTUNITY TITLE: Notice of Guarantee Availability (NOGA) inviting This document is scheduled to be published in the Federal Register on 01/07/2016 and available online at http://federalregister.gov/a/2016-00047, and on FDsys.gov BILLING CODE: 4810-70-P DEPARTMENT OF

More information

Program Guide. Michigan State Housing Development Authority

Program Guide. Michigan State Housing Development Authority Program Guide Michigan State Housing Development Authority MSHDA Programs The Michigan State Housing Development Authority (MSHDA) is dedicated to building a thriving and vibrant future for Michigan.

More information

Memorandum. SB2qJOSE CAPITAL O1: SILICON VALLEY. (c) FROM: John Stufflebean SUBJECT: SEE BELOW DATE: 05-05-11. Approved COUNCIL DISTRICT: 3

Memorandum. SB2qJOSE CAPITAL O1: SILICON VALLEY. (c) FROM: John Stufflebean SUBJECT: SEE BELOW DATE: 05-05-11. Approved COUNCIL DISTRICT: 3 COUNCIL AGENDA: 05-17-11 CITY Ol = SB2qJOSE CAPITAL O1: SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL Memorandum FROM: John Stufflebean SUBJECT: Approved SEE BELOW DATE: Date COUNCIL DISTRICT: 3

More information