Tax Credit Financing
Low-Income Housing Tax Credits: Clayborn & Associates, LLC has extensive experience with the development of multi-family and single-family housing utilizing the low-income housing tax credit (LIHTC) program. The LIHTC program provides developers of affordable housing projects access to the equity markets and investors with capital to invest in their projects.
The equity provided by the investors replaces the amount of loans required to finance the development of these projects and therefore permits the owner to rent the units at lower rates. Clayborn & Associates has represented owners, developers, lenders, and purchasers of LIHTC projects. We have worked with clients to provide the legal services required to fulfil their objectives. As this area is highly regulated, a detailed understanding of this area is required. Clayborn & Associates has provided its clients with the skills required to complete its projects.
Historic Tax Credits: Clayborn & Associates has provided legal services in connection with projects financed in part with historic tax credits. We have assisted in the preparation of the Part I, Part II, and Part III approval of the project. In addition, we have prepared the master leases, subleases, mortgages, financing, and project documents associated with these historic projects. Historic tax credits may be a part of the project’s financing along with a HUD-insured mortgage, LIHTC, or NMTC. Clayborn & Associates has the experience required to utilize these programs and respect the specific guidelines of each.
New Markets Tax Credits: Clayborn & Associates, LLC has extensive experience in the New Markets Tax Credit (“NMTC”) area gained by serving as counsel to a community development entity (“CDE”) and a community development financial institution (“CDFI”). In that capacity we have provided legal services in connection with many varied projects. The NMTC program is another tool available to assist in the redevelopment of distressed communities. These projects are another example of public/private partnerships and are funded with a combination of loans and equity contributions. As counsel for the CDE/CDFI, we have provided the legal counsel services to the CDE/CDFI, including ensuring compliance with its allocation agreement and with the NMTC requirements. We also prepare all of the documents required to establish that the CDE/CDFI and Sub-CDE/CDFI are duly authorized, validly existing, and in good standing with their states of formation, and provide corresponding attorney’s opinions. We review and provide comments on all source loan, bridge loan, if any, and leverage loan documents. Clayborn & Associates reviews the investment fund documents, addresses due diligence requirements, and all qualified low-income community investments (“QLICI”) loan documents.
Clayborn & Associates, LLC has served as counsel to qualified active low-income community businesses (“QALICB’s”) which are the ultimate project borrowers in NMTC transactions. In this capacity we have worked with clients to establish the organizational structure for the transaction, formed the required entities, reviewed and revised financial models, assist in the negotiation of the investment with the investment fund, and prepared and reviewed leverage loan documents and equity documents. Clayborn & Associates has experience with the development of commercial and retail projects utilizing both NMTC, historic credits, and other forms of financing.