Strategic CPA & Advisory Solutions for CDCs and Affordable Housing
AAFCPAs provides proven solutions for both nonprofit and for-profit affordable housing and commercial real estate developers, as well as multi-program Community Development Corporations (CDCs). Our experience extends to a wide variety of community-oriented lenders supporting the sector, including: Community Development Finance Institutions (CDFIs), quasi-public agencies, and other specialized lending organizations.
CDCs combine a passion for social justice with viable management and business practices. CDCs manage multiple programs, highly-regulated funding sources, and oftentimes, complex real estate holdings. These organizations are key enablers for reviving growth in communities by developing residential and commercial property, ranging from affordable housing to shopping centers and even businesses.
AAFCPAs’ experience is unparalleled in this ever-changing and highly-regulated industry. We are industry thought leaders well versed in public/private partnerships, and our unique blend of commercial and deep nonprofit expertise allows us to deliver cutting edge guidance.
Expertise and Insight Affordable Housing Developers Rely On
Funding Sources – AAFCPAs has extensive experience working with CDFIs, CDCs and other affordable housing organizations and their financing sources, such as the Department of Housing and Urban Development (HUD), the Treasury’s CDFI Fund, NeighborWorks America (NeighborWorks), and state and local municipalities. We are well versed in the unique restrictions and compliance aspects of these awards and often counsel clients on challenges and opportunities.
GAAP Requirements – We have expert knowledge of accounting requirements unique to the industry including FASB requirements applicable to real estate development, lending organizations, complex grant and contract arrangements, consolidating financial statements and much more. We stay current with ever changing rules and help you remain in compliance.
Government Auditing Standards – We are deeply rooted in all policies and procedures for meeting FASB requirements, CDFI compliance, Uniform Guidance / Single Audit regulations, Financial Status Reports, and ERISA regulations.
Tax Credits – AAFCPAs professionals are specialists in tax credit-based financing used widely in the community development industry, including: New Markets Tax Credits, Low-Income Housing tax credits, federal and state Historic Rehabilitation tax credits, Renewable Energy tax credits, and projects that combine tax credits with various levels of debt and rental assistance subsidies. We routinely provide advisory services throughout a project’s life cycle from deal structuring, to tax credit compliance, and assisting with investor exits.
Specialized Training – We provide specialized training and technical assistance specifically for your industry. We have presented a series of financial management workshops to Massachusetts CDCs customized to include topics such as budgeting, implementing financial and performance measurement systems, and asset management. These workshops are sponsored by the Massachusetts Association of Community Development Corporations (MACDC), Community Economic Development Assistance Corporation (CEDAC), and Local Initiatives Support Collaborative (LISC). We frequently guest speak on aspects of the New Markets Tax Credit and related requirements.
Widely Respected – We have earned the respect and trust of diverse stakeholders in the field such as the Housing Partnership Network (HPN), Massachusetts Housing Investment Corp., and BlueHub Capital (formerly Boston Community Capital), along with national organizations such as the Opportunity Finance Network (OFN), and NeighborWorks America. We are actively involved with the industry, providing accounting standards updates and promoting best practices for financial reporting by CDFIs through OFN’s Performance Counts program as well as Strength Matters, a group co-sponsored by HPN and NWA providing affordable housing developers with best practices and technical training.
Beyond Compliance: Strategic Guidance for CDCs and Affordable Housing Organizations
In addition to best-value assurance and exceptional tax expertise, AAFCPAs provides proactive guidance on areas critical to the success of affordable housing organizations and community development corporations (CDCs). We deliver easy-to-understand, thoughtfully developed audited financial statements and separate operations from real estate development activities to help lenders and board members accurately evaluate the performance of individual entities and lines of business.
Our services also include transaction analysis, due diligence, and capital raising, as well as support for tax-exempt bond financing, cost certifications, tenant eligibility and compliance reviews, and budgeting and cash flow analysis. We provide accounting for building and construction costs, REAC filing requirements, IRC Section 42 compliance testing, and State and Local Tax (SALT) considerations, along with review of internal controls for best practices.
We further examine financial and personnel resource allocations, calculate financial ratios, provide benchmarking against similar nonprofit organizations, and offer financial training for boards of directors. Our team consults on real estate development projects from predevelopment and cost certifications at inception through exit planning, including strategies to minimize tax liability for expiring projects.
Additional advisory services include outsourced accounting and fractional CFO solutions, technology & process, IT advisory, institutional investment advice, money management, financial planning and consulting, executive deferred compensation and retirement plan consulting, succession planning, fiduciary guidance, and investment advisory for employee benefit plan sponsors. We also provide technical accounting support for implementation of new accounting standards, complex operational and financial transactions, and audit preparation.