James Neeld

The Developer's Brief

The 4% LIHTC Term Sheet Series

A walk through the investor term sheet in a 4% bond-financed low-income housing tax credit transaction: what the deal is and what the term sheet is actually committing the parties to, how the credit amount and price are set and what the adjusters do when the numbers move, how capital contributions are staged against the conditions to funding and stabilization, and the four guaranties and guarantor covenants the sponsor signs to get the money.

4 parts

  1. Part 1 of 4

    The 4% LIHTC Term Sheet Series, Part One: Why the Transaction Exists and What the Term Sheet Covers

    Part one of a sponsor-side series on the 4% LIHTC equity term sheet in tax-exempt bond deals: why the transaction exists, what the term sheet does within it, and the fourteen components a complete term sheet contains, with an illustrative investor form.

  2. Part 2 of 4

    The 4% LIHTC Term Sheet Series, Part Two: Credits, Pricing, and the Adjusters

    Part two of the sponsor-side 4% LIHTC term sheet series: the credit sections, the pricing sentence, and the capital adjusters, how they fix what the investor buys and pays, where 2026 pricing sits after the 25% bond test, and the comments worth making.

  3. Part 3 of 4

    The 4% LIHTC Term Sheet Series, Part Three: Capital Contributions, the Conditions to Funding, and Stabilization

    Part three of the sponsor-side 4% LIHTC term sheet series: the four capital-contribution installments, the conditions to funding each, and why the stabilization installment is where the sponsor's leverage is decided.

  4. Part 4 of 4

    The 4% LIHTC Term Sheet Series, Part Four: The Guaranty Package and the Guarantor Covenants

    Part four of the sponsor-side 4% LIHTC term sheet series: the four guaranties every investor term sheet contains, the guarantor net worth and liquidity covenants, and where the release conditions are actually negotiated.

Companion

Example term sheet

The annotated exhibit the series refers to.

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The Developer's Brief

Field notes on real estate development law.

Occasional dispatches on deal structure, entitlements, and the quiet patterns that move large projects. No filler.

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