Year 15: Transition Strategies for Expiring LIHTC Properties (slides)
Many Low Income Housing Tax Credit properties are reaching the end of the 15 year Low-Income Housing Tax Credit compliance period, and are eligible for sale to their sponsors. Year 10 in the life of a tax credit deal is an ideal time to begin planning and taking action. In this session, we discuss disposition strategies for the nonprofit sponsor, and review partnership provisions including rights of first refusal, purchase options, exit taxes, and preservation of affordability. We briefly discuss understanding capital accounts, an action plan for preparing for Year 15, and review hypothetical case studies.