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

Polsinelli’s Affordable Housing practice group advises on and closes LIHTC transactions nationwide. Well versed in combining LIHTCs with other tax credit programs and incentives, we provide counsel in transactions utilizing Historic Rehabilitation Tax Credits, various State Tax Credits, federal and state grants and loans, tax abatement and HUD 202 and 811 subsidies. Our projects encompass affordable housing with ground floor commercial space, clinic facilities, governmental facilities, educational facilities, daycare centers and other non-residential use developments. Our team has institutional knowledge and foundational relationships with lenders, investors, syndicators and developers which benefit all players in the affordable housing industry. 

As a full service team, we partner with attorneys across the firm who have deep experience in tax law, real property law, banking regulation and securities law in all stages of a project’s life cycle - from pre-development to acquisition and financial closing, asset management and compliance issues, workouts, refinances and exit issues.

Utilizing our team’s significant experience, knowledge and progressive techniques we structure, document and close transactions in a timely and cost-efficient manner.

Notable experiences include:

• Utilizing LIHTC as part of HUD Mixed-Finance Public Housing transactions
• Mixed-use projects utilizing condominium ownership
• Single-family scattered site projects
• Special needs housing, including senior, veterans, permanent supportive housing and alcohol/drug rehabilitation centers
• Tax-exempt bond financing
• HUD financing
• HOME grants and loans
• Leveraging tax increment financing (TIF) proceeds
• Property tax abatement or exemption
• Resolving compliance issues
• Restructuring of equity and debt
• Year 15 exit issues
• Community land trusts
• Working with State and local housing and finance authorities 
• Tenant and Project-based Section 8 housing
• Exempt organization formations, administration and tax filings
• Utilizing Live Local Act incentives
• RAD Conversions