By Jeremy Densmore and Lee Dodson
Timely delivery of first-year credits benefits developers, syndicators, and investors in a Low Income Housing Tax Credit (LIHTC) development. The project itself also benefits because additional equity may be contributed, which means additional funds are available to get the project off to a good start. In this article, we will cover two fundamentals that support a successful first-year credit delivery.
For an affordable housing project in the Section 42 LIHTC program, these fundamentals include properly placing the building(s) in service and getting the building(s) occupied with qualified tenants during the initial lease-up.