CDCs & Affordable Housing CPA & Advisory
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.
Primary Reasons Affordable Housing Developer Clients Appreciate AAFCPAs
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.
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 CDCs, including:
- Easy to understand, thoughtfully developed audited financial statements. We separate operations from real estate development activities because we understand how this helps lenders and Board members to accurately evaluate the performance of individual entities and separate lines of business.
- Transaction analysis, due diligence, and capital raising
- Tax-exempt Bond Financing
- Cost certifications
- Tenant eligibility/compliance review
- Budgeting & cash flow analysis
- Accounting for building and construction costs
- REAC filing requirements
- IRC Section 42 Compliance Testing
- State and Local Tax (SALT) considerations
- Review of internal controls for best practices
- Examine financial and personnel resource allocations
- Calculate financial ratios and provide benchmarking to other similar nonprofit organizations
- Provide financial training for your board of directors
- Consult on real estate development projects, from predevelopment and cost certifications at inception to exit planning
- Develop plans to exit expiring projects to minimize tax liability
- Managed Accounting Solutions: Right-size, outsourced accounting solutions, from cloud-based bookkeeping to high level CFO oversight oversight
- Business Performance, Internal Controls & IT Advisory
- Institutional investment advice, money management, financial planning & consulting, executive deferred compensation & retirement plan consulting, and succession planning solutions
- Fiduciary guidance and investment advisory solutions for employee benefit plan sponsors
- Technical Accounting Advisory: Implementation of new accounting standards, assistance with complex operational and financial transactions, audit preparation
“The employees of AAFCPAs are smart and professional. They emphasize competence, thoroughness, and timely execution at all levels. They consistently meet our tight timeframes with efficient processes and effective overall approach. They are a pleasure to work with and know how to get a project done with minimal interruption.”
Community Economic Development Assistance Corporation (CEDAC) | Roger Herzog, Executive Director