Tax credit advisors
Monetizing Low Income Housing Tax Credits from Mixed Income Projects Through Our Proprietary Structure
Previously, due to numerous impediments related to the complexities of mixed income-tax exempt bond financed real estate, it was viewed as impossible to efficiently syndicate the accompanying tax credits.
RKCM is the solution - enabling developers to monetize this valuable source of financing which would otherwise be underutilized and in some instances completely lost.
With evolving affordable housing policies focused on sustainable mixed income communities, the RKCM syndication structure will become increasingly vital for developers wishing to maximize the economics of these specialized transactions.
Bifurcating the subject mixed-income project (a “Project”) by implementing a condominium regime whereby the low-income units (on the one hand) and the market-rate and moderate-income units (on the other hand) are organized into separate condominium units allows for the syndication to investors of LIHTC from the affordable-units without sacrificing ownership, control, depreciation deductions, or the economics of the remainder of the Project. RKCM’s proprietary structure has been approved by most major multifamily lenders and many of the largest housing agencies, and will not disrupt financing, tax abatements, or regulatory restrictions.
An investment partnership sponsored by RKCM (the “Investment Partnership”) will acquire a membership interest in the LIHTC Syndication Entity. The Investment Partnership will contribute cash in exchange for a 99.99% share of the LIHTC and losses generated by the LIHTC Syndication Entity.
Is on the forefront of these evolving transactions
340 Pemberwick Road | Greenwich, CT 06831 | 203.869.0900 | www.therichmangroup.com