Low-income housing tax credit work, with an emphasis on the 4% bond-financed transaction: what the term sheet actually commits the parties to, how credits are priced and adjusted, and the Section 42 rules that govern a purchase while the project is still under construction.
5 pieces
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.
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.
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.
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.
How a buyer's federal tax analysis under Section 42 works when a low-income housing tax credit project is sold before any building has been placed in service, and how Revenue Ruling 91-38 builds eligible basis for a mid-construction step-in.
The Developer's Brief
Occasional dispatches on deal structure, entitlements, and the quiet patterns that move large projects. No filler.
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