Practice Contact

Janice E. Hetland
Practice Area Chair
T. 314.552.6886

Tax Credit Finance and Development

The Tax Credit Finance and Development group at Polsinelli Shughart PC has a nationwide practice, with vast knowledge and industry experience regarding development and finance of projects utilizing federal historic tax credits, federal new markets tax credits (both as equity investments and as loans), federal energy tax credits and federal low-income housing tax credits. Additionally, our team has experience with other federal, state and local tax credits and development incentives, such as state historic, brownfields, new markets and low-income housing tax credits, tax increment financing, tax abatement and tax-exempt bonds.

Members of our tax credit finance and development group are frequent speakers at national seminars on current topics and issues in this area. Our attorneys have the knowledge, experience and innovative techniques necessary to structure these challenging transactions, which typically involve multiple layers of debt and equity, and may also utilize master lease structures, twinned and non-twinned historic and new markets equity investments, leveraged loans and multiple CDE new markets tax credit allocations.

Our attorneys also have extensive knowledge and experience respecting HUD financed development, including such programs as HOPE VI, HUD 202 and 811 capital advances, HUD-insured loans and HOME and CDBG financing.

Notable Experience

Historic Tax Credit Transactions

Representation of developers and equity investors in connection with development of historic buildings, for use, inter alia, as office buildings, hotels, theaters, residential uses (market rate, low-income rental housing and “for- sale” condominiums), mixed-use commercial and residential uses, museums and other commercial uses. Financing sources have included federal and state historic tax credits, federal and state low-income housing tax credits, federal new markets tax credits, FHA-insured loans, conventional financing, tax-exempt bond financing and tax-increment financing, as well as a variety of state and local development incentives and state credits.
Financing structures include “master lease” structures with pass through of the federal historic tax credits to a master tenant entity, as well as single entity structures.

LIHTC/Affordable Housing

Representation of investors in, and developers of, historic buildings, developed to provide affordable housing or mixed-income housing, utilizing a “master lease” structure, with pass through of the federal historic tax credits to a master tenant.
Representation of investors, developers, lenders and bond purchasers in connection with a variety of low-income housing projects, including 9% credit transactions and transactions involving tax-exempt bonds and 4% tax credits.
Representation of investors in connection with “workouts” of tax credit projects during the compliance period and in connection with development of exit strategies.
Representation of developers of, and investors in, mixed income HUD HOPE VI and capital advance multi-family residential projects. Funding sources have included HUD HOPE VI and capital advance funds, HUD 202 and 811 capital advances, federal and state low-income housing tax credits, HOME and CDBG grants and loans, ARRA funding, state contributory tax credit proceeds and state grants.

New Markets Tax Credit Transactions

Representation of community development entities, lenders, for-profit and non-profit developers and investors, respecting development of qualified active low-income community businesses in qualified census tracts. Representative qualified active low-income community businesses include, inter alia, development of office buildings, hotels, research and technology facilities, museums, mixed-use commercial and residential buildings, business incubators, retail establishments, shopping centers, ethanol production facilities, salmon processing facilities and other for-profit and non-profit commercial uses.
Financing structures have included leveraged and non-leveraged loan financings and equity investments, twinned historic and new market transactions. Further, these financings typically involve multiple layers of debt and equity and multiple community development entity NMTC allocations.

News

August 10, 2011	Polsinelli Shughart Expands National Financial Services Department in St. Louis
July 14, 2011	Polsinelli Shughart Expands Financial Services Department
July 7, 2010	Polsinelli Shughart Adds St. Louis Attorney Frederick Miller to Assist Clients With Complex Tax Credit Finance Needs