The affordable housing industry is a relatively small, tight-knit community of socially-conscious business people. They have responded to a need for well-built, safely-maintained, well-preserved, clean, and affordable housing for communities and families in need. Naturally, there are unique, challenging, and rewarding opportunities for all those involved.
For more than 20 years, Canterbury Law has counseled owners, developers, and property management companies within the affordable housing industry, primarily within the USDA Rural Development housing programs. We have the legal experience within the affordable housing industry to help you reach your goals.
Low Income Housing Tax Credit (LIHTC)
We represent developers and owners in successful bids for low-income housing tax credits issued through the Alabama Housing Finance Authority. Our advice includes:
- Negotiating and formalizing the syndication of tax credits.
- Syndicating tax credits with investment partners.
- Incorporating additional financing including federal multifamily mortgage loans, grants administered through the Federal Home Loan Bank, and tax-exempt bond proceeds.
USDA Rural Development Multi-Family Housing Compliance
We have counseled multiple owners and management companies on compliance with USDA RD regulations. Our advice includes compliance with all aspects of the landlord-tenant relationship, compliance with RD servicing handbooks, the development of RD compliant leases, management agreements, management plans, and tenant selection policies.
Sales and Acquisitions of Ownership Interests in USDA RD Financed Properties
Canterbury Law served as counsel on numerous transactions involving the purchase and sale of the general partner’s interest, the limited partner’s interest, or both, in partnerships owning properties subject USDA RD financing and low-income housing restrictive covenants.
Rehabilitation of USDA RD Multi-Family Properties
We represent owners and developers of numerous low-income housing tax credit assisted apartment projects which have completed the tax credit compliance periods and that are in need of rehabilitation and preservation.
Through acquiring the interests of the investors, we work with developers to create ownership structures that allow for re-development using acquisition tax credits, rehabilitation tax credits, additional federal multi-family financing, tax-exempt bond proceeds, and other program incentives.
We work closely with clients throughout, from development through construction and rent-up.
Canterbury Law recently served as owner and developer’s counsel on a $43.7 million multifamily housing transaction involving 13 aged USDA Rural Development Section 515 properties, consisting of 398 apartment units serving low-income households in 10 counties across the state.
The financing plan combined both public and private funding and included $13.8 million in multifamily private activity tax exempt bonds by the Alabama Housing Finance Authority, the purchase of 4% Federal LIHTCs by an investor limited partner generating over $7 million in capital contributions, the assumption and subordination of $10.1 million of original USDA RD Section 515 debt, and the issuance of new long term debt comprised of a combination of USDA guaranteed 538 loans and new USDA 515 loans.