A. J. Johnson Author Archives

Many owners and managers of existing multifamily housing properties converting under the federal Rental Assistance Demonstration (RAD) program will need to become familiar with the compliance requirements for the federal low-income housing tax credit (LIHTC) program and often also those of other subsidy programs. Many RAD transactions will utilize the housing tax credit equity to raise equity to renovate and recapitalize these properties.

Every low-income housing tax credit (LIHTC) property is subject to periodic site inspections and reviews by various parties seeking to determine whether the project is in compliance with the requirements of the federal tax credit program and the state credit agency.

The low-income housing tax credit (LIHTC) market appears to have stabilized, with yields on national multi-investor funds and tax credit pricing to developers generally the same as in April.

The successful operation and performance of a low-income housing tax credit (LIHTC) project requires choosing the right property management company.

Skilled and vigilant management should keep a property at a healthy occupancy level, assure that it performs well physically and financially, and put investors in a good position to receive the full amount of projected tax benefits.

Tax Credit Advisor, April 2009: The Community Development Financial Institutions (CDFI) Fund has issued an implementation plan describing how it plans to award $3 billion in extra federal new market tax credits and other funds provided by the economic stimulus act.

Tax Credit Advisor, April 2009: Are you a teacher? If so, you can get great break on your monthly rent at the new Miller’s Court development in Baltimore, MD. Public education – and rewarding the professionals who contribute to it – is the theme of this $21.9 million historic rehabilitation project, which is utilizing new markets and historic tax credits.

Tax Credit Advisor, April 2009: Maryland’s state historic rehabilitation tax credit program has yielded not only economic benefits but also environmental and sustainability benefits, according to a new report published by the Abell Foundation. The foundation supports various efforts to counter poverty and serve the disadvantaged in the Baltimore area.

Tax Credit Advisor, April 2009:The low-income housing tax credit (LIHTC) equity market appears likely to remain muted at least for a number of months, even as projected yields to investors ramp upward rapidly.

Tax Credit Advisor, April 2009: Galen Terrace, an 84-unit affordable apartment property in the Anacostia neighborhood of Washington, DC, is a poster child for the benefits of green retrofitting.

Tax Credit Advisor, April 2009: Green is now the color in developers’ eyes. Whether it’s affordable rental housing assisted by the low-income housing tax credit (LIHTC), historic rehabilitation, or a new markets tax credit project, developing in a green and sustainable fashion has become almost essential to compete effectively for tax credits and other resources.

Tax Credit Advisor, April 2009 The Community Development Financial Institutions (CDFI) Fund is soliciting public comments and responses to questions and issues raised regarding how it should design, implement, and administer the new Capital Magnet Fund (CMF) program authorized by the Housing and Economic Recovery Act of 2008 (HERA). Comments are due by 5/5/09.

Tax Credit Advisor, April 2009: Florida tax credit developer Debra Koehler, who specializes in rehabbing and preserving older urban high-rise apartment properties, is spending more of her time these days “selling” her deals, because of the greater difficulty today raising tax credit equity.