Tax Credits

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Reinhart’s Real Estate Practice has a wide range of experience working with a variety of tax credits on different developments. We have worked extensively with both for-profit and nonprofit developers, and have significant expertise in areas of particular concern to nonprofits.

Reinhart has acted as legal counsel to owners, developers, lenders and investors in more than 200 sophisticated low-income housing tax credit (Housing Tax Credit) and historic rehabilitation tax credit (Historic Tax Credit) projects throughout the United States. Reinhart has assisted its clients in obtaining equity from virtually all of the major tax credit syndicators and from direct investors such as banks, corporations and individuals.

Reinhart attorneys have been involved in a variety of tax credit projects, including those involving acquisition, rehabilitation and new construction projects with locations in the inner city, as well as urban and rural areas. Many of the projects have included both residential and commercial components, and Reinhart has assisted its clients in forming condominiums to maximize flexibility. Many of the projects have involved multiple layers of financing, including CDBG, HOME, NSP, HOPE VI, TCAP and other federal funds, Section 1602 grant funds, Federal Home Loan Bank AHP funds and TIF funds.

We assist our clients in all phases of Housing Tax Credit and Historic Tax Credit projects, including structuring projects to obtain optimal tax results, acquiring real property, obtaining zoning and other municipal approvals, reviewing and consulting on environmental issues, and preparing and negotiating architect, construction, consulting, development and property management agreements, construction and permanent financing documents, grant agreements and syndication documents. Reinhart has considerable expertise in structuring equity syndications to the maximum benefit of its clients.

Reinhart has broad experience representing our clients under the New Markets Tax Credit (NMTC) program. Since the inception of the program, Reinhart has represented Community Development Entities (CDEs), Qualified Active Low-Income Community Businesses (QALICBs), leveraged lenders, NMTC equity investors and NMTC investment advisors in structuring and closing NMTC transactions. In fact, Reinhart closed the first Qualified Equity Investment (QEI) in the State of Wisconsin in 2003, representing the first Wisconsin-based CDE to obtain an NMTC allocation.

Our counsel has included advising CDEs on compliance and syndication issues and advising leveraged lenders on collateral and control issues at the investment fund, CDE and QALICB levels. We also assist our QALICB clients in analyzing whether their business qualifies as a QALICB, finding CDEs to allocate NMTC to their business, finding sources of leveraged debt and NMTC equity investment and tax planning upon exiting the program. The members of Reinhart’s tax credit group are also frequent presenters at NMTC seminars.

  • Represented a for-profit developer in partnership with a nonprofit housing association in the charitable contribution and simultaneous acquisition of 5 affordable housing projects using Low-Income Housing Tax Credit (LIHTC), Illinois donation tax credits, subordinated USDA permanent financing, conventional construction financing, AHP financing from the FHLB of Chicago and project-based Section 8 rent subsidy
  • Represented a for-profit developer in partnership with a public housing authority in the acquisition and rehabilitation of a public housing project using LIHTC, Section 8 project-based vouchers, public housing rent subsidy, Capital Fund Financing Program (CFFP) financing and conventional construction financing
  • Represented a for-profit developer in partnership with a nonprofit housing association in the acquisition and rehabilitation of an affordable housing project using LIHTC, USDA rental assistance, subordinated USDA permanent financing, subordinated municipal permanent financing and tax-exempt bonds
  • Represented a nonprofit developer in the acquisition and rehabilitation of two affordable housing projects for the elderly using LIHTC, Section 1602 and 1603 stimulus funding, project-based Section 8 rent subsidy and HUD-insured permanent financing
  • Represented a for-profit developer in partnership with a public housing authority in the acquisition and redevelopment of a public housing project and its surrounding neighborhood using LIHTC, Hope VI funding, Section 8 project-based vouchers, public housing rent subsidy, AHP financing from the FHLB of Chicago and conventional construction and permanent financing
  • Represented a nonprofit developer in the acquisition and rehabilitation of an historic hotel to provide affordable housing for the elderly using LIHTC, Section 1602 and 1603 stimulus funding, project-based Section 8 rent subsidy, AHP financing from the FHLB of Chicago and conventional construction and permanent financing
  • Represented a nonprofit developer in the development of an affordable housing project using LIHTC, Shelter Plus Care Subsidies and project-based Section 8 vouchers
  • Represented a nonprofit developer in the development of an assisted living facility using LIHTC and historic tax credits