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 
  • 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
  • HOME grants and loans
  • Leveraging tax increment financing (TIF) proceeds
  • Property tax abatement or exemption
  • Compliance issues
  • Restructuring of equity and debt
  • Year 15 exit issues
  • Buffalo Ridge Apartments – 244-unit LIHTC and 63-20 Corp. affordable rental housing project in Avon, Colorado.  Represented the developer in land acquisition for the project from master developer, structuring and closing of equity investor’s investment in tax credit partnership (utilizing 4% LIHTCs and private activity bonds), drafting, negotiation and closing of HUD 221(d)(4) construction and permanent financing for the projects,  worked on various development matters, and obtained exemption from sales tax levied on construction materials that saved the project $250,000.00.
  • Valley Brook Housing project, Breckenridge, Colorado - Represented developer in the development, construction and financing of a 60 unit for-sale deed restricted affordable condominium project located in Breckenridge, Colorado, which was ultimately completed by the Town of Breckenridge and the Summit Combined Housing Authority.    Work included the drafting and negotiation of a development agreement between the developer and the Town of Breckenridge, condominium declaration and associated HOA documents, construction and design contracts, deed restriction, land acquisition agreement and qualification of the project for FHA multifamily unit mortgage financing.
  • St. Michael Veterans Apartments – 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.
  • Huntington Park, California – Representation of developer in connection with $11 million development, financing, rehabilitation, and construction of a 36 unit affordable housing project and two community recreation/office buildings utilizing federal 9% and state tax credit equity, AHP funds, and traditional bank financing. 
  • Affordable Housing in Jackson, MS – Representation of syndicator and co-developer in connection with $12 million rehabilitation of 72 unit affordable housing development financed with state and federal tax credit equity, 1602 Exchange funds, and traditional bank financing.
  • Affordable Housing, Kansas City, MO – Representation of syndicator  and co-developer in connection with $17 million rehabilitation of 140 unit affordable housing development financed with federal tax credit equity, 1602 Exchange funds, and traditional bank financing.
  • Chaffee Park and Shoshone Senior Residences in Denver, CO – Represented developer in 9% LIHTC transaction, including negotiation of investor pledge of funds, construction loan, permanent loan, soft development loans, bridge loans and real estate development.  Two phase senior affordable housing project with 96 combined units.  
  • East Animas Village Apartments in Denver, CO – Represented developer on the real estate work related to subdivision and entitlements required for site control in connection with construction of 50-unit affordable rental property.  
  • The Pointe – A mixed-use affordable for-sale, office, retail and LIHTC rental housing development located in the historic Five Points neighborhood in Denver, Colorado.  Long-standing representation of the non-profit developer of this mixed-use LIHTC project, including defense of construction defect claims, and on-going leasing and financing matters associated with this project.