Affordable housing tax credits make developments possible.
Low-income housing tax credits (LIHTC) make development not only possible, but financially viable. Since the introduction of low-incomes housing tax credit (Section 42) in 1986, SVA has helped real estate developers, nonprofit organizations and community housing agencies obtain credits. In fact, over 75% of federal low-income housing tax credits awarded in Wisconsin have been to SVA clients.
Formula for Success
SVA has assisted developers nationwide in creating residential rental housing using the low-income housing tax credit program. As a recognized CPA authority in the industry, our professionals have developed specific strategies with proven success.
We offer guidance and advice for developers from the initial application process, through the placed in service date, into the operation of the project and through the exit phase of the transaction.
Our services extend beyond the transaction, designed to continue throughout the lifetime of the LIHTC project, we offer:
- Consulting in accordance with the state housing agency’s qualified allocation plan
- Prepare financial projections for financial feasibility and optimal structuring
- Negotiating with investors – bringing in and exiting the deal
- Assist with finding financing options
- Performance of the 10% test certifications
- Cost certifications
- Breakeven and debt service coverage ratio calculations
- Annual audit and tax return preparation
- Year 15 opt out calculations
Additional Real Estate Services for Developers