Low Income Housing Tax Credit

Freed Maxick has experience in the low-income housing tax credit (LIHTC) industry, assisting owners of affordable housing projects by providing them with tax, accounting, auditing, consulting, and valuation services. We guide our clients through the structuring and business issues related to this program.

Our clients rely on deep understanding of both government and industry requirements. We provide creative solutions to complicated transactions and offer guidance as clients navigate the complex environment related to their LIHTC transactions.

Transaction, Tax & Compliance

Although LIHTC projects can be a challenge to structure, the appropriate guidance from our professionals can mitigate a potential stressful experience. We address and resolve complex business and tax issues and aid our clients throughout the entire structuring, financing and application process. Our specific services in this area include:

• Quarterly tax estimates
• Cost segregation studies
• Annual tax return preparation
• LIHTC applications
• Placed-in-service packages
• Debts ervice coverage ration analyses
• General partner experience reports
• Loan staff engagements
• Valuation consulting
• Litigation support and expert witness testimonies
• Reverses Sales Tax Audits

Investor Services

LIHTC projects would not be feasible without investors who play an important role in the financing of LIHTC deals. Our engagement team can provide investors with value-added services that will put them at ease when contemplating whether or not to invest in a LIHTC project. We also provide services that monitor partnership activities throughout the compliance period to help ensure the tax credit investment is free of problems and potential recapture. Our investor services include:

• Analysis of waterfall payments based upon partnership and/or debt agreements
• Develop experience reports
• Final cost and eligible basis certifications
• Due diligence reviews
• Break-even and debt service coverage ratio calculations
• Forensic accounting
• Valuation and appraisal
• Portfolio performance and analysis

Accounting Services

Freed Maxick offers cost-effective accounting services to clients and takes care to understand fully the nature of the client’s business. Our professionals provide tax and accounting advice as needed throughout the process. Our expertise in the LIHTC industry is unparalleled and will aid our clients with the following specific accounting services:

• Annual audits of financial statements
• Annual tax return preparation
• 10% certification reports
• 50% certification reports
• Cost benefit analysis
• Tenant file testing
• Internal control compliance testing
• Final cost and eligible basis certifications
• LIHTC applications
• Placed-in-service packages
• Debt service coverage ratio analyses
• Developer experience reports
• General partner experience reports
• Loan staff engagements
• Valuation consulting
• Litigation support and expert witness testimonies
• Solar panel basis certifications