Builders Risk Coverage Forum-Builders Risk Coverage Forum: Day 1 - Construction Tax Credits: Historical and Low Income

Video Transcription

Video Summary

The video provided an in-depth look at Low-Income Housing Tax Credits (LIHTC) and Historic Tax Credits (HTC) programs, with discussions led by experts in the field. LIHTC, established in 1986, encourages private equity investment in affordable housing by offering tax credits. These credits are competitive and crucial for project financing. Investors, typically corporate entities, benefit from tax rules and the Community Reinvestment Act. LIHTC projects are structured as limited partnerships, providing financial viability and equity boost. The video stressed the importance of LIHTC investments in creating and preserving affordable housing, with low recapture and foreclosure rates, attractive returns, and tax benefits.<br /><br />Investing in tax credit projects offers various benefits, such as meeting Community Reinvestment Act requirements and reduced tax rates. These investments are low-risk with favorable gap reporting, making them appealing to banks. Compliance issues like maintaining income restrictions were highlighted, along with the significance of insurance in protecting stakeholders from recapture risks. The speakers emphasized the complexity of investing in tax credit projects, emphasizing the need to comprehend regulatory requirements and risks involved for investors and developers.

Asset Caption

Date of Publication: September 21, 2021
Duration: 1.5 hours

Presented by:
Nicholas Ratti, Principal, Real Estate Practice, CohnReznick
Kathleen Galvan, Senior Project Manager, NTCIC
Tom Lipford, Business Development Specialist, Great American

Meta Tag

Module Builders Risk Coverage Forum

Keywords

Low-Income Housing Tax Credits

LIHTC

Historic Tax Credits

HTC

Affordable Housing

Private Equity Investment

Tax Credits

Limited Partnerships

Community Reinvestment Act

Project Financing

Compliance Issues

Regulatory Requirements

Investor Risks