Our Practice
Tax CreditsThe Affordable Housing & Tax Credit group focuses on all aspects of the acquisition, development, financing, ownership, operation and disposition of low- and moderate-income and special-needs housing. We have extensive experience in the syndication of low income tax credits through the development of affordable housing projects throughout the country. In particular, we represent both non-profit and for-profit developers in all phases of the low-income tax credit process and tax-exempt bond financing. In addition, we have expertise in rehabilitation and certified historic tax credits.
Our Affordable Housing & Tax Credit Team
Affordable Housing is a multiple-disciplinary practice involving securities, taxation, real estate, commercial finance, partnership law, environmental regulation and governmental relations. Each team member brings a specialized understanding of the industry and relies on the firm's expertise in many additional areas. In addition, each brings a personal background of hands-on industry experience, including working directly with organizations in the forefront of industry development.
Areas of Emphasis
- Expertise in I.R.C. Sections 42 and 47
- Application for and acquisition of tax credits from state authorities
- Structure of ownership entity
- Acquisition, development, financing and operation of affordable housing projects
- Syndication and securities offerings; proxy solicitation of investor and limited partner approval for dispositions and re-financings
- Negotiate and facilitate state and local bond financing
- Facilitate effective disposition of tax credit projects and general partner/investor partner interests, including significant familiarity with recapture bonds, financing assumption and defeasance, regulatory authority and lender approval and year 15 strategic planning strategies.
In addition to monitoring the law and observing current business trends, the C&H Affordable Housing & Tax Credit group takes a leading role in this growing industry. Team members have been instrumental in creating new opportunities to sell tax credits, through the sale of established projects or sale of partnership interests to institutional investors, allowing developers to free up needed assets and to focus on new development.
For more information: Contact Dan Vaughn directly at (206) 254-4484 or dvaughn@cairncross.com.
Highlighted Clients and Projects
American Capital Group. We have worked extensively with American Capital Group in connection with its large portfolio of tax credit properties located throughout the United States. Our involvement has included tax credit syndication work, structured acquisitions and dispositions, tax credit allocation and other related work.
Yesler Terrace, Redwood Apartments. We worked with a local Seattle developer on a number of low-income, or income-restricted bond financed developments, including the 132-unit Quintessa Apartments, opened at 2nd & Yesler in Pioneer Square, Seattle in 2007 and the 232-unit Redwood Park Apartments, located in Eugene, Oregon, and opened in 2005.
Affordable Housing Associates. We worked with this California developer in connection with several low-income, bond-financed projects throughout the country.
Emerson Senior Living, Inc. We have worked with Emerson Senior Living to facilitate project sales of low income housing tax credit projects to large institutional investors, investor proxy work, loan structuring and closing and other proactive efforts to enhance the value of its portfolio in Oregon, Washington and California.
Artspace Projects, Inc. We have worked with this national, non-profit developer to acquire, finance and develop income restricted live work space. This project had a number of separate financing sources and a condominium structure was implemented in order to provide separate collateral to each respective lender.
Panorama City. We have worked with this regional developer to facilitate tax-exempt and taxable bond financing and re-financing for its assisted living facilities.
