CDCs & Affordable Housing CPA & Advisory
Community Development Corporations (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.
Owners, developers and financiers of affordable housing projects must navigate complex processes and federal and state regulations, and it can be daunting to maintain a firm grip on financial reporting while keeping up with ever-changing compliance requirements.
AAFCPAs’ experience is unparalleled in this ever-changing and highly-regulated industry. Our depth of CDC and Affordable Housing expertise coupled with our extensive exposure to the best practices in the sector makes us uniquely qualified to deliver impactful solutions.
In addition to best-value assurance and exceptional tax expertise, AAF provides proactive guidance on areas critical to the success of affordable housing organizations and CDCs, including:
- Easy to understand, formatting consolidated financial statements. AAF separates 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.
- Tax credit eligible basis analysis, and assistance with tax credit programs, including: Low Income Housing Tax Credits, New Markets Tax Credits, federal and state Historic Tax Credits, tax credit exchange, tax credit assistance programs, and credits for use of alternative energy sources.
- Transaction analysis, due diligence, and capital raising
- Analysis of financing options to anticipate your changing needs
- 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
Our comprehensive knowledge of all new, existing, and changing applicable tax credits in the community development industry makes us uniquely qualified to provide valuable solutions. We provide advisory services to limited partnerships/limited liability companies during exits at the end of tax credit compliance periods.
AAFCPAs provides proven solutions for CDCs, and both nonprofit and for-profit real estate developers, ranging from properties qualifying for low-income housing tax credits only, to projects that combine tax credits with various levels of debt and rental assistance subsidies. AAFCPAs is a recognized leader in the CDCs & affordable housing industries and an ideal fit for anyone who appreciates exceptional value.