R&C’s Tax-Incentivized Development practice focuses on federal, state, and local tax incentives that promote affordable housing and commercial development. R&C attorneys have expertise with Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, and New Markets Tax Credits. In addition, R&C attorneys also have an expertise in underutilized tax incentives such as Gulf Opportunity Zone Credits, Tax Increment Financing, Payments in Lieu of Taxes, and energy credits. The firm represents both for-profit and non-profit developers in LIHTC transactions, including those layering on Historic Tax Credits, New Markets Tax Credits or other forms of tax incentives and lenders providing additional financing to such developments. Finally, R&C attorneys have experience with representing parties utlizing the public private partnership ("P3") model to develop infrastructure projects outside of the multiufamily housing industry.
R&C‘s Tax Incentivized Development practice has worked on transactions involving Low-Income Housing Tax Credits (LIHTCs) since the creation of the program. This representation includes all aspects of and parties involved with a transaction—developers (nonprofit, for-profit, and vertically integrated with construction and management aspects), conventional lenders and investors, and public housing authority lenders. In addition, R&C has been at the forefront of providing legal advice on other types of tax credits that can be applied to the community development field, including New Markets Tax Credits and Historic Tax Credits. R&C attorneys also represent clients utilizing green investments, energy-related tax credits, tax increment financing, tax-exempt bonds, and Payments in Lieu of Taxes programs established at state or local levels for incentivized uses such as community development.
Nearly all of R&C’s Tax-Incentivized Development practice’s transactions involve the use of LIHTCs to leverage additional public and private funding sources, including public housing funds in mixed-finance transactions. We provide assistance to clients from initial application through the compliance period on LIHTC transactions, which is especially relevant to public housing authorities that utilize self-development. R&C negotiates equity documents, including the partnership agreement, to ensure that they reflect the appropriate business terms and do not impose requirements that conflict with the other deal documents. Our attorneys ensure that the overall financing scheme of each transaction complies with all federal requirements for LIHTC or mixed-finance projects. Because many R&C attorneys have accounting or business backgrounds, our attorneys also serve as an additional pair of eyes on financial issues and structuring pro-formas. When incorporating tax-exempt bonds into transactions, we carefully review the bond documents and related security and credit enhancement agreements to be sure that our clients’ interests are protected while also complying with the various cross-cutting regulatory requirements. Many of R&C’s Tax-Incentivized Development transactions also include the layering of Historic Tax Credits with other funding sources, including various types of tax credits, as well as lenders providing additional financing to such developments. Moreover, we have counseled a range of clients on the New Markets Tax Credit program, and our attorneys are frequent speakers on the program at industry conferences.