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LIHTC covered bonds for affordable housing



  Apartment buildings with affordable housing

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There are many different uses for security bonds in the Affordable Housing industry. In our security practice, we often work with contractors and developers on LIHTC offerings – from performance and payment bonds for the contractor to completion or "sharing bonds" for the LIHTC developer.

LIHTC Recapture Bond

Recently, after noticing growing needs from customers and leaders for affordable housing, we decided to develop a LIHTC Recapture Bond program. Selling or buying a LIHTC property before the end of the 15-year compliance period can be a significant challenge as many institutional tax credit investors are hesitant to allow a change of ownership during the tax credit compliance period. Previously, the IRS demanded a bond; While this requirement is no longer in place, many investors require a collateral bond or other form of collateral. Given this need in the market, we have collaborated with an international security company to develop our own security product.

LIHTC Recapture Bond assures tax credit investors or limited partners that the property will remain in compliance with Section 42 of the IRS Code and that they will be protected against tax credit recovery and / or interest fines. The goal of this security product is to provide flexibility for the sale of a LIHTC property within the 15-year compliance period.

About our security

We have partnered with QBE Surety to develop this exclusive LIHTC security product. The security is set as "Excellent" by AM Best and has a financial size of "XV" ($ 2 billion or more). It is listed on the US Department of Treasury & # 39 ;s list of certified companies.

Insurance and pricing

The insurance process for this security is immediate, simple and straightforward. This product is ideal for those with long experience of LIHTC projects. Our LIHTC Recapture Bond offers affordable, fixed annual premium rates. Pricing depends on the buyer's LIHTC experience, financial stability and the size of the bond.

Contact me if you are interested in learning more about our innovative, new product to serve the affordable housing industry.


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