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Low Income Housing Tax Credits


Spencer Fane Tax Credit attorneys work with real estate developers, investors, syndicators and nonprofit organizations to maximize the benefits available to them through both federal and state tax credit programs to assist in the production of affordable housing projects that benefit qualified low-income households. Whether the project involves brand new construction from the ground up or rehabilitation of an existing property, we have the experience to add value to your project.

Our team is comprised of both real estate and tax attorneys who are seasoned and knowledgeable in identifying and understating complex housing, tax, and regulatory compliance issues and developing sophisticated solutions that maximize client value in all aspects of affordable and multifamily housing projects nationwide. Our attorneys are highly experienced and connected with state housing agencies, developers, syndicators, and investors nationwide who are vital to the completion of successful affordable housing developments. If a client is considering 9% Low-Income Housing Tax Credit projects in a competitive application process or utilizing tax-exempt bonds under a 9% Low-Income Housing Tax Credit structure, we can help the client achieve goals and maximize return under either scenario.

We assist developers and investors in all stages of a project utilizing Low Income Housing Tax Credits. From the very beginning of the process, we create the organizational framework required for the project, including drafting all necessary organizational documents, completing state filing requirements, and analyzing the client goals within the context of the individual projects and tax credit applications to ensure that the corporate structure is one that allows the client to take advantage of the benefits of the Low Income Housing Tax Credit program while simultaneously meeting the needs of the state housing agencies administering the program. This gives our clients the best opportunity to receive, implement and benefit from an allocation of tax credits now and in the future.

We assist with many aspects of project development including the negotiation of purchase, lease, or option agreements for the development property, drafting operating agreements, and assisting with site assessments such as survey, title work, and environmental reviews. As the project develops, we have the ability to handle all transaction documents, including construction contracts and architect agreements, and we provide guidance to keep the project in compliance with the applicable regulations and requirements mandated by federal and state agencies. We negotiate and draft partnership and investor agreements essential to facilitate that the project benefits are received and distributed in a manner that meets the expectations of all stakeholders. Our ultimate goal is to help developers and investors enter into a mutually beneficial relationship to earn financial success while at the same time reaping the reputational rewards and corporate pride associated with the creation of housing that ultimately allows low-income tenants in need to receive the benefit of living in quality affordable housing that can better the lives of their families.

During all stages of a project, we provide detailed analysis and comprehensive document review and drafting focused on minimizing the financial and other risk to the client while simultaneously maximizing the return on the client’s investment. Projects involving rehabilitations, non-profit partners, a mix of low-income and market rate units, additional forms of tax credits such as historic tax credits, special zoning areas, tax abatement or incentive programs, special design and build requirements, or any number of other unique challenges will benefit from the direct and detailed experience of our professionals who know how to creatively and efficiently address unique challenges or concerns.

We are familiar with the nuances of various state housing agency applications that administer the Low Income Housing Tax Credit program. Each state housing agency maintains its own unique policies, procedures, and priorities for allocating tax credits for affordable housing projects. Our team facilitates contact with the state housing agencies and assists our clients in creating well-crafted applications, helping developers create affordable housing projects that align with the requirements and preferences of state housing agencies to be allocated tax credits.

Additionally, our attorneys are experienced in regulatory compliance matters, tax analysis, investor transfers, and project sales that may become future areas of client needs associated with successfully developed projects. We also provide valuable insight into the designation of properties within qualified census tracts or opportunity zones that may provide additional benefit to a project.

Our work in the affordable housing industry spans a variety of sub-markets including housing designed specifically to serve veterans, provide an assortment of supportive services, involve partnerships with non-profit organizations, or operate as senior housing. Our work also spans geography as we have assisted projects in almost every state throughout the nation and have focused on projects in urban, suburban, and rural markets. We function as a resource for our clients and have the ability to connect our clients to developers, investors, professional services (i.e. architects, appraisers, title companies, etc.), non-profit partner organizations, and other parties necessary for a successful affordable housing project. Additionally, our professionals help navigate the world of political and municipal considerations that are often related to project development. Through our experience and connections, we create a successful project framework, assist the client in navigating the complexities of organization creation and project documentation, anticipate potential issues and resolve them efficiently or leverage our vast network to find solutions quickly, understanding all real estate deals move quickly and require responsive services.