The Low-Income Housing Tax Credit (LIHTC) is an essential tax incentive program for creating and preserving affordable housing that can present challenging business, tax and legal issues for investors, syndicators, developers and lenders. LIHTC projects typically involve multiple layers of debt and equity, including other state and federal tax credit programs, state and federal grants and subordinate loans, and operating subsidies. 

Polsinelli’s Affordable Housing practice has comprehensive, nationwide experience in facilitating complex LIHTC transactions. Our attorneys’ extensive experience is enhanced by our commitment to understand our clients’ businesses and provide high-quality, straightforward legal advice that is proactive - anticipating and addressing our clients’ business goals.

Our professionals combine their multidisciplinary experience with state-of-the-art knowledge and innovative techniques to structure, document and close these multifaceted transactions in a timely and cost-efficient manner, and to assist our clients in handling any post-closing asset management and exit issues and strategies. Our specialized experience includes:

  • Combining LIHTCs with Historic Rehabilitation Tax Credits and Renewable Energy Tax Credits
  • Combining LIHTC with state tax credits
  • Combining LIHTC with HUD 202 and 811 capital advances
  • Utilizing LIHTC as part of HUD Mixed-Finance Public Housing transaction
  • Mixed income and mixed use projects, including combining affordable housing with ground floor commercial space, clinic facilities, governmental facilities, educational facilities, day care centers and other non-residential uses
  • Mixed use projects utilizing condominium ownership
  • Single family scattered site projects
  • Special needs housing including senior, veterans, formerly homeless and alcohol/drug rehab
  • Tax-exempt bond financing
  • HUD financing
  • Federal Home Loan Bank, HOME and CDBG grants and loans
  • Leveraging tax increment financing (TIF) proceeds
  • Property tax abatement or exemption
  • Project-based Section 8 and VASH vouchers
  • Compliance issues
  • Restructuring of equity and debt;
  • Year 15 exit issues

  • 12th and River - Representation of equity investor in connection with the new construction of 53 affordable senior apartment units in Idaho financed with a conventional construction first mortgage loan and a permanent HUD 202 capital advance (with PRAC rental subsidy), HOME Investment Partnership Act funds and 9 percent Federal low-income housing tax credits. Total development costs are approximately $12 million.
  • Mercer Commons - Representation of equity investors in connection with an $18 million affordable and market rate housing condominium project, in 10 historic buildings and one new construction building in Cincinnati, Ohio, financed with Federal and Ohio HTC, Federal LIHTC, conventional financing and taxable bonds. The ground floor commercial condominium units in the project are intended to be developed using Federal NMTC.
  • Victory Apartments, LLC - Representation of equity investor in connection with a $12.4 million rehabilitation and new construction of one building in Omaha, Nebraska into 80 residential units with commercial space on the first and second floors of the building, using the master lease structure. Financing included Federal low-income housing tax credits, conventional financing and TIF financing.
  • Maria Linden 72, LLC  - Representation of equity investor in connection with a $15.1 million rehabilitation of the 1923 school building and new construction addition in Milwaukee, Wisconsin into multi-family rental housing for elderly residents (ages 62 and over), consisting of 72 residential units. Financing included Federal low-income housing tax credits, federal historic tax credits and conventional financing.
  • Rose Quarter - Representation of equity investor in connection with a $14.5 million affordable housing condominium that is part of an overall $25.5 million rehabilitation in Oregon, funded with Federal low-income housing tax credits, a below-market permanent first mortgage loan and subordinate debt funded from a variety of grants and subsidies.
  • St. Michael Veterans Apartments  - Representation of equity investor in connection with the first phase of a mixed use project which is being developed as 58 units of affordable housing for homeless veterans in Missouri. The development financing includes Federal and Missouri LIHTC, a loan of HOME Investment Partnership Act funds, and subordinate cash flow debt, as well as Section 8 project-based vouchers.
  • Stout Street Lofts  - Representation of equity investor in connection with the development of a new construction mixed use condominium, containing a 78-unit affordable housing condominium providing housing for the homeless located in Denver, Colorado. Financing included Federal LIHTC and Federal Home Loan Bank funding. A health clinic in the remainder of the condominium is separately owned and financed with federal NMTC.
  • Habitat for Humanity  - Representation of an equity investor in connection with its $25 million qualified equity investment (“QEI”) (consisting of a $7.8 million equity investment and $18.4 million leveraged loan) that was loaned to five Habitat for Humanity affiliates in the Gulf Opportunity (GO) Zone to build approximately 300 homes in communities affected by Hurricane Katrina.
  • Hyde Park Apartments - Representation of equity investor in connection with a $12 million rehabilitation of the historic Hyde Park Hotel in Kansas City, Missouri into 75 elderly affordable apartment units with community facilities and ground-floor commercial space. The project was financed with equity from federal and Missouri LIHTCs, Federal and Missouri HTC and Missouri Affordable Housing Assistance Program tax credit loan proceeds.
  • Paul Brown - Representation of the developer of a $53 million historic and low income tax credit project in the City of St. Louis, into 222 units of mixed income housing, with ground floor commercial space. Financing included tax-exempt bonds, the proceeds of which were loaned pursuant to a HUD §221(d)(4) loan, Federal and Missouri LIHTC and HTC, Missouri brownfields tax credits and TIF financing.