New Resource: Red Flags for Nonprofits in Housing Tax Credit Deals
LeadingAge National, in collaboration with the National Housing Trust and the law firm of BC Davenport, has updated a warning sheet of 10 “red flags” that nonprofit general partners want to be on the lookout for as their Low-Income Housing Tax Credit (LIHTC) properties near Year 15.
As they have for years, a minority of investor partners continue to challenge nonprofit transfer rights under the LIHTC program and pressure nonprofits to abandon their transfer rights, pay a substantial buyout, agree to a forced sale, or otherwise provide financial benefit to the investor. These firms appear to be aggregating investor interests in LIHTC partnerships; asserting myriad claims and arguments against project transfers, including transfers to nonprofits; and extracting value from the project or nonprofit.
Nationally, approximately 33 percent of LIHTC apartments have at least one occupant who is 62 years of age or older.
View the updated “10 Red Flags in LIHTC Deals” fact sheet here.
Contact: Annalyse Komoroske Denio, email@example.com, 518-867-8866