Affordable Housing and Community Development

inancing affordable housing and community development projects is rarely simple or straightforward, often involving numerous funding sources and multi-tiered ownership, investment and financing structures. Whether your project is being financed with low-income housing or other tax credits, private financing or Federal, state or local grants, loans or operating subsidies, you should expect your legal counsel to bring the knowledge and experience of hundreds of affordable housing and community development transactions to your team. Kuhl & Grant’s attorneys have more than fifty years of combined experience in affordable housing and community development, successfully closing hundreds of projects throughout Indiana and other states. For more than a decade, the firm’s partners have been identified as the development team attorneys on the majority of Low Income Housing Tax Credit (LIHTC) applications submitted and funded in Indiana, and have personally closed the substantial majority of LIHTC-awarded projects in the state.

As important as our depth and breadth of industry knowledge and experience are in helping you to successfully structure and close your transaction, we also recognize the significant value that relationships carry within the industry. By approaching each transaction as an opportunity to provide a positive impact on the success of the project, our attorneys have established collaborative working relationships with tax credit allocating agencies, public housing authorities, nonprofit community organizations, Federal, state and local agencies, private and public lenders and tax credit investors and syndicators. So whether this is your first transaction or your fiftieth, Kuhl & Grant can bring measurable value to your development team.

Our clients include for-profit, non-profit and governmental developers, owners and managers, as well as municipalities, contractors, consultants, lenders and investors. We represent Indiana-based clients as well as regional and national clients with activities in Indiana and other states. Through our broad client base, we have substantial experience with an equally broad range of affordable housing and community development projects, including multi-family and single-family residential for families, seniors and special-needs populations, scattered-site/infill, condominiums, permanent supportive housing, lease-purchase, mixed-use, mixed-finance, office, educational, civic/public and retail developments. In connection with securing and closing the financing for these projects, we have substantial experience with numerous Federal and state tax incentives, governmental loan and grant programs, and operating subsidies, many of which may be combined on a single project, including the financing tools described below.

Low-Income Housing Tax Credits

Kuhl & Grant attorneys have served as developers’ counsel on the substantial majority of LIHTC-funded projects in Indiana for well over a decade, as well as projects located throughout the United States. As a result, our attorneys have substantial experience in all aspects of the LIHTC program, including:

  • LIHTC applications
  • LIHTC structuring and tax matters
  • Owner, general partner and developer entity structure and formation
  • Property acquisition
  • LIHTC syndication and resyndication
  • Debt financing
  • Admission, debt and other opinions
  • Construction, architect and other project agreements
  • LIHTC compliance matters
  • Work-outs and restructurings
  • Exit strategies at or before Year 15
  • 1602 (Tax Credit Exchange Program) matters
  • TCAP (Tax Credit Assistance Program) matters
  • 4% LIHTC matters in connection with tax-exempt bond financing

Historic Rehabilitation Tax Credits

Our attorneys have represented developers of commercial and residential projects throughout the United States which qualify for and utilize Historic Rehabilitation Tax Credits (HRTCs), including those which also utilize LIHTC or New Markets Tax Credit (NMTC) financing. We regularly provide advice, counsel and services in connection with all aspects of HRTC qualification and financing, including:

  • Part I, 2 and 3 applications
  • Communication with State Historic Preservation Office and National Park Service
  • HRTC transaction structure, including master lease/credit pass-through transactions
  • Entity formation
  • Project acquisition
  • HRTC syndication and debt financing
  • Admission and debt opinions
  • National Register nominations
  • Post-recapture dispositions

New Markets Tax Credits

Our attorneys have represented developers and borrowers as well as community development entities (CDEs) in connection with a variety of NMTC transactions, including office/retail space, nonprofit community centers, television/radio stations, charter schools. Many of these transactions have combined NMTCs with HRTCs, tax-exempt bonds and other development incentives. Our NMTC services include:

  • CDE certifications
  • NMTC applications
  • NMTC transaction structure, including leveraged models
  • NMTC syndication
  • Debt financing
  • Master leasing

Housing and Urban Development (HUD) Loans and Development and Operating Subsidies

We regularly assist clients in all aspects of applying for, securing and closing HUD loans, whether for new construction, acquisition or refinancing. Our experience includes HUD 202, 221(d)(3), 221(d)(4), 223(f) and 236 loan products. In addition, our firm has represented developers and owners in connection with virtually every type of HUD development and operating subsidy, including:

  • HOME Investment Partnerships Program (HOME) Grants and Loans
  • Community Development Block Grants (CDBG)
  • Neighborhood Stabilization Program (NSP) Funds
  • HOPE VI Financing
  • Mixed-Finance Projects
  • Public Housing (ACC) Operating Subsidies
  • Public Housing Capital Funds and Replacement Housing Factor Funds
  • Section 8 Rental Assistance
  • Shelter Plus Care Rental Assistance

Indiana Housing and Community Development Authority

Our attorneys have represented developers and owners in securing and closing all types of development financing provided by the Indiana Housing and Community Development Authority (IHCDA), including:

  • Affordable Housing and Community Development Fund (f/k/a Trust Fund)
  • NSP Funds
  • HOME Funds
  • CDBG/CDBG-D Funds
  • 1602/TCEP Financing
  • TCAP Financing
  • Strategic Investment Program Funding

United States Department of Agriculture/Rural Development

We regularly represent developers and owners in connection with transfers of Rural Development (RD) financed properties, assumptions of existing RD loans and Rental Assistance contracts, securing and closing new RD loans (including 515, 538 and Rural Preservation loans) and grants, and restructuring RD projects with LIHTC allocations. Because of the complexities involved in combining RD and LIHTC financing, we work collaboratively with USDA/RD officials (at both the State and Federal levels), lenders and investors to ensure that such projects can be successfully restructured to ensure their long-term viability.

Federal Home Loan Bank

Kuhl & Grant attorneys have represented developers and owners in securing and closing hundreds of Affordable Housing Program (AHP) grants and Community Investment Program (CIP) construction and term loans. We also provide advice and counsel to our clients regarding AHP application, compliance and recapture matters.

Tax-Exempt Bond Financing

Our attorneys have served as owner’s/borrower’s tax credit counsel and local bond counsel on multifamily affordable rental projects which are financed with tax-exempt bonds and LIHTCs, with project types including new construction, acquisition/rehabilitation, family and senior. In addition, our attorneys have represented nonprofit, tax-exempt organizations in connection with affordable housing developments financed with 501(c)(3) bonds.