Affordable housing businesses looking to achieve economic benefits in providing safe, affordable rental housing for lower-income communities must successfully navigate a range of federal and state programs.
While these offer numerous opportunities for tax credits, tax-exempt financing and other vehicles, they bring with them a host of reporting and regulatory obligations that must be scrupulously adhered to. Missteps can be costly and lead to disqualification from future programs. CohnReznick has one of the most extensive and experienced affordable housing industry practices in the United States. As such, we are often asked to provide input into the review and development of government affordable housing programs. We provide for-profit and nonprofit developers, public housing authorities, state housing credit agencies, syndicators, investors, and lenders with a range of accounting, tax and business advisory services, including:
• Feasibility analysis and capital raising: Before construction starts, we can create financial projections to help maximize the project's return and then identify the range of appropriate financing possibilities, from tax credit allocations to attracting equity investors.
• Application preparation: We help in the development and review of applications for tax credits, tax-exempt bonds and other programs, scrutinizing them as program administrators will and thus increasing their chances of success.
• Financial statement audits: We conduct the financial statement audits that both the government and investors will require, and prepare tax returns for the property.
• Maintaining compliance: Once the deal has closed, we can help with issues that may threaten continued tax credit eligibility such as construction delays and cost overruns. We also have unique experience with the complexities of HUD-mandated cost certification.
• Internal control and recordkeeping evaluation: We can review internal processes against reporting requirements, identify areas for improvement and recommend and help implement solutions.
• Transaction analysis and due diligence: We draw upon our knowledge of the affordable housing arena to provide lenders, investors and others with objective, third-party analysis of cash flow, risk and other factors.