Navigating the Maze of Housing Finance
Tax Credit Financing
Common Ground has over 20 years of experience with tax credit financing, including:
- Low-Income Housing Tax Credits
- New Markets Tax Credits
- Special tax credit programs
The Low-Income Housing Tax Credit (LIHTC) program is a complex and widely successful vehicle for funding affordable housing. Common Ground has successfully utilized LIHTC for 30 developments, including both variations of the program, known as 4% and 9% credits. We know how to assemble competitive proposals for credit allocations, perform complex rate-of-return analyses, find and negotiate with investors and effectively use the tax credit equity in projects.
This means we can make sure your project is competitive, viable and successful.
Common Ground is also well known for our expertise in New Markets Tax Credits (NMTC), a vehicle for funding a variety of investments in the infrastructure of low-income communities. We have presented workshops on the topic and completed five NMTC transactions. We’re skilled at leveraging other sources of financing to generate additional credits and obtain maximum benefit for your goals.
We have also completed projects taking advantage of other, lesser-known federal programs. These include the Historic Preservation Tax Incentives Program, Rehabilitation Tax Credits and renewable energy tax credit programs. We can help you access these sources, sell them to investors and meet compliance requirements.
Tax-Exempt Bond Financing
Common Ground has experience structuring deals including both Tax-Exempt Private Activity Bonds and 4% LIHTC. When feasible, this combination of public financing sources has two appealing advantages: low debt service costs and a less competitive process.
We have also helped organizations utilize 501(c)(3) Nonprofit Bonds to finance real estate developments including health care, educational, cultural or recreational components.
Mixed-Finance HUD Developments
Common Ground has assisted 14 nonprofit agencies in accessing U.S. Department of Housing and Urban Development (HUD) Section 202 and Section 811 financing. These programs fund supportive housing for seniors and persons with disabilities, respectively. Our track record includes mixed-finance deals that involve LIHTC. We are experts at navigating HUD processes and bringing these projects to successful conclusion.
We have also assisted several public housing authorities on projects combining LIHTC with HUD sources, such as HOPE VI. We know the mixed-finance closing process in intricate detail.
State and Local Funding
State, county and local governments offer a web of housing finance programs that are often crucial components of larger financial packages. Common Ground can help you understand and successfully engage these sources and seamlessly combine them with tax credits and/or HUD financing.
Private Financing
Many housing finance packages involve private sources for construction loans and/or long-term debt. Common Ground can help you navigate the options and choose the right partners. Our experience includes loans with HUD mortgage insurance, Section 108 loans and conventional bank loans.
