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Selecting a Market Analyst for North Carolina Bond Applications
With a July 19, 2013 due date, developers are putting the required documentation together for their North Carolina bond applications. Unlike 9% applications, developers contract directly with market...
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Selecting an Appraiser for North Carolina Bond Applications
An appraisal is required for proposed acquisition/renovation bond transactions in North Carolina. The purpose of the appraisal is to establish the “as is” value of the building to be acquired....
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Tax-Exempt Bond Credit Enhancement: Fannie Mae Products
Fannie Mae provides tax-exempt bond credit enhancement for the construction and rehabilitation of multifamily properties. Although Fannie Mae products are priced higher than HUD, the application...
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Tax-Exempt Bond Credit Enhancement: HUD Products
HUD provides tax-exempt bond credit enhancement for the construction and rehabilitation of multifamily properties. Although HUD products are priced lower than Fannie Mae, the application process is...
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Tax-Exempt Bond Credit Enhancement: Freddie Mac Products
Freddie Mac provides tax-exempt bond credit enhancement for the construction and rehabilitation of multifamily properties. Like Fannie Mae, Freddie Mac products are priced higher than HUD but the...
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Bond Financing for Multifamily Housing
State and local governments sell tax-exempt bonds to finance apartments affordable to lower income families. According to the National Council of State Housing Agencies (NCSHA), multifamily housing...
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Experienced Development Partner Requirement for North Carolina Tax-Exempt...
The 2013 North Carolina Housing Finance Agency (NCHFA) Qualified Allocation Plan (QAP) includes a requirement that all bond deals include at least one principal who has successfully developed, operated...
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Income Targeting for North Carolina Tax-Exempt Bond Deals
HUD defines “very low income households” as households earning less than 50% of Area Median Income (AMI). Tax-exempt bond deals in North Carolina are required to set aside a portion of their units for...
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Income Targeting for North Carolina Low Income Housing Tax Credit Deals
Section 42 of the IRS Code defines a “qualified low-income housing project” as a residential rental project that meets one of the following two tests: 20-50 Test. Twenty percent or more of the...
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Income Targeting for Projects Claiming the North Carolina State Tax Credit
The North Carolina Housing Finance Agency (NCHFA) administers the state tax credit (STC) in conjunction with the North Carolina Department of Revenue (NCDOR). Projects with an award of 9% credits under...
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North Carolina’s Rental Production Program
North Carolina Housing Finance Agency’s Rental Production Program (RPP) makes loan funds available for qualifying affordable housing projects in the state. RPP funds come from a variety of state and...
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US Economic Outlook
We anticipate sluggish economic growth for the United States the next several years. Although robust growth does not appear to be on the horizon, we do not anticipate a recession in the immediate...
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North Carolina Awards: Annual Tax Credit per Unit
The 9% tax credit application process is very competitive. Every point counts. Every dollar counts. That’s why seasoned developers look closely at parameters such as land cost per unit, total...
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North Carolina Awards: Development Cost per Unit
Another important parameter for developers to consider is development cost per unit. All things being equal, projects with lower development costs per unit will require less tax credit. And as we saw...
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North Carolina Awards: Land Cost per Unit
The next parameter we will consider is land cost per unit. All things being equal, projects with lower land costs per unit will be easier to finance. In the table below we present land cost per unit...
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North Carolina Awards: Tax Credit Pricing
One of the most closely followed parameters in tax credit development is equity pricing. Although sometimes quoted as percent yield, equity pricing is usually expressed as the ratio of equity raised...
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Experienced Development Partner Requirement for North Carolina 9% Tax Credit...
The 2013 North Carolina Housing Finance Agency (NCHFA) Qualified Allocation Plan (QAP) includes a requirement that all 9% tax credit deals include at least one principal who has successfully developed,...
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Top Development Sponsors in North Carolina
As we pointed out in a previous post, the 2013 North Carolina Housing Finance Agency (NCHFA) Qualified Allocation Plan (QAP) includes a requirement that all 9% tax credit deals include at least one...
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