Affordable housing

Real Estate
Tax Credits

 

Real Estate-based Tax Credits

We offer tax credit financing services for the following tax credits:

Affordable Housing Tax Credits (LIHTC)

Historic Building Rehabilitation Tax Credits

Brownfield Tax Credits

Easement Donation Tax Credits

Affordable Housing Tax Credits (LIHTC)

The Federal government provides a financial incentive for real estate developers to create and maintain affordable rental housing. Written into the US Tax Code in 1986 at Section 42, this program has spurred the creation and retention of over 2.6 million apartment units across the United States and territories.

Historically, the federal tax credits have been "syndicated" or sold to large corporate investors, primarily banks, FannieMae and FreddieMac. During the recent recession and turmoil in banking, the federal government stepped in with programs to eliminate the private sector's involvement. As the economy recovers, new corporate taxpayers are finding that investing in housing tax credits is both profitable and good business. Clocktower Tax Credits helps developers find such investors, and helps investors analyze and review such investment opportunities.

With a tax credit infrastructure in place, many states issue their own tax credits to further their mission of creating safe, affordable rental housing. Such states include: California, Colorado, Georgia, Hawaii, Illinois, Massachusetts, Missouri, New York, Utah and Vermont. State tax credits are usually more difficult for developers to sell, as the market for these credits is much more limited than for federal credits. Again, Clocktower Tax Credits identifies corporate investors across the country which have significant tax liability in these states. We look beyond the obvious, local investors to find experienced buyers of state credits, and consistently complete financings highly dependent on this state tax credit equity.