Affordable Housing News & Views - October 2020

Join CohnReznick and Goldstein Hall PLLC for a discussion about the rights an investor partner has in a Low-Income Housing Tax Credit (LIHTC) project and how those rights can be exercised to protect their investment, profit, and control of the project – whether exiting or remaining after Year 15. Topics to be discussed include:

• The statutory framework of LIHTC projects, including the underpinning tax principles
• How to preempt the concerns a not-for-profit partner may have as Year 15 approaches and the investor partner prepares to exit
• How to calculate capital accounts, and the significance of a negative capital account
• Analyzing potential waterfall distributions and right of first refusal (ROFR) implications
• Recent legal developments

This webinar is anticipated to qualify for one CPE credit and will be held Oct. 13 from 10-11:30 a.m. ET. As always, on-demand will be available for those who cannot make the live time.

Earlier this year, the IRS issued final regulations regarding the business interest expense limitations included in the Tax Cuts and Jobs Act  (TCJA), along with additional proposed regulations to clarify some issues not covered in the original proposed regulations (issued in 2018). The final regulations are effective for tax years beginning after Nov. 13, 2020, so will be in effect for next tax year, but taxpayers may opt to adopt them early if they do so consistently from 2018 forward.

Almost three years after the passage of the TCJA brought to life the first new community development tax incentive in nearly 20 years, there’s still far more that we don’t know than we do know about the rules of the road for Opportunity Zones (OZs). In a three-part discussion, we and a slate of guest speakers will share what we have learned so far and work through misinformation, wishful thinking, and confusion. We invite investors, fund managers, developers, and, most importantly, community members to join us for this virtual event to kick-start a dialogue about the promise and challenges related to OZs.

Join one, two, or three: 

• 1 p.m. ET | Panel 1: OZs and the first 100 days of the new administration
• 1:50 p.m. ET | Panel 2: Maximizing sustainable impact and community benefit in OZs
• 2:40 p.m. ET | Panel 3: How to catalyze operating businesses in OZs

Our new “Business of LIHTC” series of events and insights kicked off Sept. 21-24 with a four-part webinar series, “Understanding LIHTC,” that is intended to help new entrants gain a foundation for how affordable housing is developed. Check out on-demand recordings for each of the four: “The business case for LIHTC development,” “LIHTC gatekeepers and players,” “Doing a deal: Before construction,” and “Doing a deal: After construction and beyond.”