Low-Income Housing Tax Credits

The Low-Income Housing Tax Credit is the most important and most successful resource available to create, develop and preserve affordable housing in the U.S. Since the LIHTC was enacted as part of the Tax Reform Act of 1986, Mahoney has worked as trusted advisors to the affordable housing industry and has assisted developers in utilizing and monetizing over $2 billion of low income housing tax credits. 

Our Real Estate Solutions Team helps many organizations work through the complex tax, regulatory, investment and compliance issues necessary to successfully complete their projects. 

We provide a comprehensive range of services in the low-income housing tax credit area and represent a variety of participants in the affordable housing industry, including local development companies, non-profit housing providers, property managers, corporate and individual investors and local housing authorities and tribal housing authorities.  Our involvement has included, but is not limited to the following services:

During Predevelopment

• Applications for tax credits
• Deal structuring
• Forecasts and projections
• Preliminary 50% test reports for tax-exempt bonds
• Consulting

During Construction

• 10% Carryover Basis certifications
• Analysis of Eligible Basis
• Cost certifications
• Final 50% test reports for tax-exempt bonds
• Tenant file certifications
• Credit adjuster calculations
• Assistance in expediting issuance of IRS Form 8609s

During Operations

• Debt service and coverage ratio calculations
• Breakeven calculations
• Compliance monitoring assistance
• Analysis of partner capital accounts
• Annual audits and tax returns

Year 15 Strategies

• Investor exit strategies
• Analysis of partner capital accounts
• Qualified contract calculations
• Sale analysis
• Re-syndication analysis