Certificated State LIHTC & Historic Credits
Preservation developers working with state housing agencies can now leverage a nonprofit solution to increase proceeds across a wider range of geographies and historic state credit programs that are certificated.
Credit-Only Transactions
Fairview Housing Partners (Fairview) can facilitate preservation transactions with a unique subordinate lending structure where Fairview sells the certificates and then lends those funds into the transaction’s permanent financing capital stack. Nominal fees apply to facilitate the loan and, in some cases, developers will be able to access a loan amplifier product, matching a percentage of the originally awarded amount.
Fairview Allocatee
Fairview will become the allocatee for the certificates upon completion of the asset’s rehabilitation. At the time of issuance, the organization is able to leverage the developer’s existing equity partners, investors and negotiated pricing for the certificate. As a 501(c)3 nonprofit affordable housing organization, the value of the certificates are retained by avoiding a taxable gain from the sale.
Loan Amplifier
Fairview is addressing the growing need for affordable housing in communities across the country through the creation of a loan product that provides amplifier funds to accompany financing for the benefit of tax credit developments, subordinate to the first mortgage and match its terms. This option has a maximum benefit of $500,000 and is executed alongside the certificated credit funds.