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Resyndication

Resyndication. by Michael Novogradac, CPA Novogradac and Co. LLP michael.novogradac@novoco.com. Slides available. www.taxcredithousing.com. Overview. Sample Project Proforma Original Syndication – Year 15 – Resyndication Tax Issues Closing the Gap. www.taxcredithousing.com.

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Resyndication

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  1. Resyndication by Michael Novogradac, CPA Novogradac and Co. LLP michael.novogradac@novoco.com • Slides available www.taxcredithousing.com

  2. Overview • Sample Project Proforma • Original Syndication – Year 15 – Resyndication • Tax Issues • Closing the Gap www.taxcredithousing.com

  3. Sources and Uses Original __________ Land & Building $ 10,000,000 Original Debt (3,000,000) -------------- Tax Credit Equity $ 7,000,000 ======= FMV – Bldg. $ 4,000,000 Basis ======= www.taxcredithousing.com

  4. Sources and Uses Original Year 15 __________ __________ Land & Building $ 10,000,000 $ 5,000,000 Original Debt (3,000,000) (2,500,000) -------------- -------------- Tax Credit Equity $ 7,000,000 $ 2,500,000 ======= ======= FMV – Bldg. $ 4,000,000 $ 6,000,000 Basis ======= (5,000,000) -------------- Gain $ 1,000,000 ======= Original __________ Land & Building $ 10,000,000 Original Debt (3,000,000) -------------- Tax Credit Equity $ 7,000,000 ======= FMV – Bldg. $ 4,000,000 Basis ======= www.taxcredithousing.com

  5. Sources and Uses Resyndication __________ Land & Building $ 6,000,000 Rehabilitation 1,000,000 Developer Fee 425,000 Other Assets 200,000 -------------- Assets $ 7,625,000 ======= Debt $ 5,400,000 Tax Credits 1,875,000 Deferred Fee 350,000 -------------- Debt/Equity $ 7,625,000 ======= www.taxcredithousing.com

  6. Closing the Gap • 9% Allocation – Rehab Credits • State tax credits • Government Money (AHP/Home/Etc.) • Seller Carryback Financing • Tax-Exempt Bonds • Installment Sale Treatment • Tax-exempt bonds www.taxcredithousing.com

  7. Tax Issues • Ten Year Rule • Related Party – 50% Test • Developer • Investor • Appraisal • FMV Land & Building • Cost Allocation: Land vs. Building www.taxcredithousing.com

  8. Questions michael.novogradac@novoco.com www.taxcredithousing.com

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