Herrick attorneys have extensive experience advising investors, lenders and real estate developers in affordable housing and community development projects. Our experience includes:

  • 4% and 9% low-income housing tax credit (LIHTC) programs – Assisting clients across the U.S. with varied interests in LIHTC projects, including construction lenders, equity fund investor syndicates, individual investors and developers.
  • New Markets Tax Credits (NMTC) – Structuring NMTC transactions on behalf of investors, community development entities (CDEs), Qualified Active Low Income Community Businesses (QALICBs) and leverage lenders.
  • Historic Tax Credits (HTC) – Structuring HTC transactions on behalf of investors and developers throughout the United States.
  • New York community development lending – Advising New York construction lenders on complex lien law issues that also involve various affordable housing programs that function through New York City Department of Housing Preservation and Development (HPD).

Whether you're in need of seasoned advice on a limited partnership agreement, or you're negotiating a letter of credit reimbursement agreement on behalf of a letter of credit enhancement bank, our attorneys have the experience necessary to guide you through the entire process, often with multiple levels of subsidies from federal, state and local government sources.

A sample of transactions that our attorneys have handled include:

  • A tax credit syndicator in the acquisition of an interest in the US $90 million construction of a 215-unit housing development in the Bronx, NY
  • A $15,000,000 construction loan letter of credit enhancement given to an institutional lender by the New York City Housing Development Corporation for a women’s homeless shelter
  • A 4% LIHTC transaction for a development in Kings County that included subsidies from HPD for a syndicated investor
  • An investment in a CDE making loans to a school in upstate New York for a NMTC investor
  • The construction of a NanoCenter in Utica, New York, representing a developer and affiliate of a New York state agency
  • A private equity company in its investment in the US $80 million rehabilitation of the Standard Building in Cleveland, Ohio into mixed-use residential and commercial space
  • An $18,500,000 construction and permanent loan to a developer of a religious institution-owned commercial building with various government subsidies including one from HPD for an institutional lender
  • A low-income housing tax credit syndicator in the acquisition of an interest in a 179-unit, mixed-income housing development in Washington, DC. which contained 4,000 square feet of ground floor retail space and was subdivided with three separate condominium units. The project was financed with tax credit equity, construction financing from a major financial institution, and permanent debt from the District of Columbia.

On July 15, 2020, the Community Development Financial Institutions Fund (CDFI Fund) awarded more than $3.5 billion in new markets tax credit (NMTC) allocation to 76 community development entities (CDEs) through the calendar year (CY) 2019 round.