Tax Credit Transaction Consulting
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.
There is a lot at stake when it comes to tax credits.
Proper tax planning is vital to maximizing your financial resources. In an increasingly complex environment, AAF stays abreast of the constant changes, and applies them to your situation. AAFCPAs has decades of comprehensive tax credit expertise. With AAF you know you are not only in compliance with all relevant tax regulations, but also maximizing your financial resources to achieve your project needs.
In addition to the required compliance filings, AAFCPAs advises developers on:
- Tax credit project projections
- Selection of depreciable lives
- Analyzing capital accounts to reduce investor risk
- IRC Section 42 Compliance Testing
- Compliance certifications, such as: 10%, 50%, and 95/5 tests
- Developing plans to exit expiring projects to minimize tax liability
AAFCPAs provides proven solutions for Community Development Corporations (CDCs), and both nonprofit and for-profit affordable housing and commercial real estate developers. Our experience in the sector 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.
We have earned the respect of diverse stakeholders in the field such as the Housing Partnership Network (HPN), Massachusetts Housing Investment Corp., and Boston Community Capital, along with national organizations such as the Opportunity Finance Network (OFN) and NeighborWorks America (NWA). 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.
AAFCPAs provides proactive guidance on areas critical to the success of affordable housing developers and CDFIs, including:
- Tax credit eligible basis analysis, and assistance with tax credit programs
- Transaction analysis, due diligence, and capital raising
- Analysis of financing options to anticipate your changing needs
- Tax-exempt Bond Financing
- Cost certifications
- Annual tenant eligibility/compliance review
- Budgeting & cash flow analysis
- Accounting for building and construction costs
- Consulting on real estate development projects, from pre-development and cost certifications at inception to exit planning
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.