Training

Low-Income Housing Tax Credits

HD425 - Low-Income Housing Tax Credits.  The Low-Income Housing Tax Credit (LIHTC) program was designed by Congress to encourage the development of affordable rental housing.  LIHTCs provide tax benefits for investors in projects that generate decent housing for low-income households at affordable rents.  NDC’s LIHTC course is an advanced to-day session designed for bankers, public sector lenders and for-profit and non-profit developers.  The course examines the techniques and procedures involved in using the LIHTC program to develop low-income rental housing and investigates LIHTC program intricacies and deals.  The emphasis is on assisting lenders and developers with their understanding of LIHTC program mechanics.  Course participants learn the key issues that arise in typical LIHTC projects as well as practical solutions.  Specific topics include:

• Critical deadlines in the LIHTC process
• Securing debt financing
• “Good” and “bad” money
• Bridge loans and appraisal issues
• Using tax-exempt bonds to qualify for LIHTCs
• Syndications
• Key points in partnership agreements
• Calculating exit taxes
• Evaluating offers from equity investors
• Using HOME funds in LIHTC projects

Prerequisite:  HD420