Strategies for Navigating Related Party Issues in Tax-Exempt Bond Transactions
In the current affordable housing development environment, multifamily projects that are not awarded competitive nine percent Low Income Housing Tax Credits are frequently exploring the four percent credit available for transactions in which, at least, 50 percent of the aggregate basis in the project is financed with proceeds of tax exempt bonds or loans (“bonds”) issued by state and local housing agencies and certain municipalities using private activity bond volume cap (the “50 percent test”).
