Low-Income Housing Tax Credits
Holland & Knight's attorneys have been leaders in the low-income housing tax credit industry since the creation of the low-income housing tax credit by the Tax Reform Act of 1986. We represent upper-tier equity investors, syndicators, direct investors, for-profit and nonprofit developers and state housing agencies with respect to transactions involving the low-income housing tax credit. Since the inception of the low-income housing tax credit, our team has been involved in thousands of separate tax credit investments in low-income housing tax credit projects involving billions of dollars in equity investments. As a result of this vast experience, we have developed extensive knowledge about the low-income housing tax credit, and the tax and business problems that can arise in structuring tax-advantaged transactions.
We handle all aspects of low-income housing tax credit transactions. On the equity financing side, our representation involves: analyzing and recommending the best structure for the investment fund; preparing the organizational documents for the limited partnership, joint venture or limited liability company owner; preparing the private placement memorandum or prospectus, selling agreements, subscription documents and related offering documents; and rendering tax advice as well as issuing tax opinions. On the acquisition side, we provide comprehensive advice to investment funds, syndicators and direct corporate investors on all deal structure, business, tax and real estate aspects of the transaction, as well as advise clients with respect to ongoing asset management and workout issues. Our attorneys also represent developers in all real estate and financing aspects of tax credit project development, as well as ongoing operational and compliance matters.
Since the enactment of the American Recovery and Reinvestment Act of 2009, our team has become particularly skilled in the two programs established to support the tax credit equity market – the Section 1602 Tax Credit Exchange Program and HUD's Tax Credit Assistance Program (TCAP). We have provided counsel to and program documents for numerous state agencies to assist in their implementation of TCAP and the Exchange Program, and have assisted investors, developers and lenders in closing transactions under these programs. In both our state agency and transactional work, Holland & Knight attorneys have assisted clients in structuring TCAP and Exchange Program transactions and addressing the unique tax issues that arise in the context of any new program, including those involving the continuing asset management and reporting requirements of such a program.
Members of Holland & Knight's Tax Credit Transactions Practice have also been involved extensively with mixed-finance transactions, including HOPE VI, since the inception of the program, representing and/or providing consulting services to equity investors, developers, housing authorities, lenders, bond issuers and underwriters and other parties. Mixed-finance transactions combine grants from the U.S. Department of Housing and Urban Development with debt and equity from the private sector to create a true public/private partnership, working to renovate and rebuild our nation's aging public housing stock. We also have significant experience with Public Housing Authorities (PHAs), developers, equity investors and other participants in other types of mixed-finance projects such as those under HUD's Section 202 Program.
Our attorneys have assisted in acquisition, development and redevelopment, and advise both nonprofit and for-profit organizations in structuring successful mixed-finance and mixed-income projects with or without HOPE VI funds – maneuvering through HUD, IRS and other regulations to find the best combination of funds.
Holland & Knight attorneys are actively involved in all major industry groups. We are members of, and serve on the board of directors of, The Affordable Housing Tax Credit Coalition, the ABA Forum on Housing and Community Development, the National Council of State Housing Finance Agencies, the National Housing & Rehabilitation Association and the Housing Advisory Group.