Tax Credits

In today’s challenging credit market, alternative means of financing capital projects is regularly required. The Firm’s Tax Credits Group is actively involved in representing businesses, lenders and investors seeking to utilize one or more government incentives programs to bridge financing gaps in connection with both the rehabilitation of existing projects and new construction projects. These programs include: New Markets Tax Credits, Historic Rehabilitation Tax Credits, Enterprise Zone reimbursements, HUD federally insured and USDA guaranteed mortgage programs and restoration tax abatements.

New Markets Tax Credits

Our firm has been actively involved in both the federal and multiple state New Markets Tax Credit (NMTC) programs since their respective adoptions. We have represented community development entities, tax credit investors, leverage lenders and qualified businesses in connection with the structuring and closing of qualified investments for construction, renovation and working capital needs. Our team has extensive knowledge and experience with complex legal, tax and regulatory issues that inevitably arise in NMTC transactions. We serve as special counsel nationwide, offering the full range of legal services required to complete NMTC transactions successfully, including:

  • Consultations related to structuring transactions, utilizing all available incentives and sources of financing, risk aversion and obtaining NMTC allocation;
  • Consultations related to federal and state reporting and compliance requirements;
  • Issuing tax opinions for tax credit investors, community development entities and borrowers;
  • Structuring, negotiating and documenting qualified equity investments in community development entities;
  • Structuring, documenting and negotiating credit provisions and compliance requirements for all parties;
  • Documenting investments and loans made by community development entities and coordinating transactional closings; and
  • The formation and certification of community development entities, as well as  the preparation and submission of NTMC allocation applications.

Historic Tax Credits

Our tax credits team maintains a national Historic Tax Credit (HTC) practice and is widely recognized for our expertise across the full range of legal issues that HTC projects involve. We represent investors and developers with respect to historic rehabilitation projects, as well as owners, developers, investors and lenders on projects that rely upon both federal and state historic tax credits as an integral part of their financing structure.

Federal Programs and Combination Financing

Our attorneys work closely with HUD’s local offices to  close HUD-insured financing projects nationwide, . Our team works on projects that successfully leverage first mortgage financing guaranteed by the USDA and Section 1603 Energy Grants, requiring close work with USDA lenders and key USDA personnel involving complex regulatory issues under the USDA, Section 1603 and the New Markets Tax Credit rules and regulations. Our group has widespread expertise in combining NMTCs with other capital sources to design financing particularly suited to the needs of specific projects. We help package New Markets Tax Credits with many other sources, such as taxable and/or tax-exempt bond financing; CDBG Funds; New Orleans Redevelopment Authority funding; USDA guaranteed loans; HUD guaranteed loans; state and local grant and loan programs; charitable grants and loans; Historic Rehabilitation Tax Credits; energy tax credits and grants; bridge loans; and private capital.

Affordable Housing/Low-Income Housing Tax Credits

Our Low Income Housing Tax Credit (LIHTC) practice utilizes the tax credits under Section 42 of the Internal Revenue Code by preparing credit applications, drafting and negotiating acquisition and partnership agreements, offering memoranda, financing documents, and construction and investment agreements, and rendering opinions with respect to all aspects of the development process. We also work closely with a number of State Housing Authorities, as well as state and local bond issuers to accomplish our clients’ goals.

The attorneys on our affordable housing team have extensive experience working with clients involved in LIHTC syndications, HUD programs and tax-exempt bond-financed development projects. Our attorneys are veterans at working with financing structures used in the housing bond market, many of which involve tax exempt financing as well as various federal credit, subsidy or tax advantaged programs.

Our team represents developers and borrowers eligible to utilize the LIHTC program, and we assist other transaction participants in identifying and securing rental subsidies, and grant programs, as well as other subsidies and sources of subordinated financing to increase the affordability component and financial viability of rental housing projects.

Our expansive affordable housing practice represents non-profit and for-profit developers, lenders, investors, syndicators and state housing agencies charged with the establishment, administration and compliance of the LIHTC program..

We represent transaction participants in the tax-exempt and taxable bond financings throughout the country serving as bond counsel, underwriter counsel, borrower counsel or bond purchaser counsel for tax-exempt bond financings for multi-family housing projects and multi-family housing revenue bond issues, including bonds using credit enhancement from FHA, USDA and GNMA and bonds that are secured by credit facilities from Fannie Mae, Freddie Mac or commercial banks. We also represent a variety of transaction participants in connection with multi-family housing revenue bonds secured by project-based Section 8 contracts, and capital grants from HUD, “cash collateralized” bonds, as well as rated and non-rated revenue bonds secured solely by project revenues.

Our team serves as bond counsel, underwriter’s counsel or borrower’s counsel for tax-exempt and taxable student housing financings across the country. We have experience in a variety of structuring techniques, including general obligation bonds, “off balance sheet” project financings and lease/lease back financing vehicles.

Our group serves as bond counsel, underwriter’s counsel and borrower’s counsel for financings to support independent living, assisted living/memory care and continuing care retirement communities throughout the country. Our attorneys have recognized expertise in dealing with stand-alone facilities and continuing care retirement communities and have particular experience with structuring multiple series of short-term and long-term bonds associated with greenfield or new construction financings for entrance fee continuing care retirement communities.

Our lawyers focus on the intricacy of the tax rules and regulations applicable to tax-exempt bonds, low income housing tax credits and 501(c)(3) issues. We also serve as arbitrage rebate analyst for a wide range of tax-exempt housing bond issues.