Speakers
- Lisa Deller, Vice President Asset Management, National Equity Fund
- Darryl Austin, Senior Counsel, Goldstein Hall PLLC
- Antonio Rodriguez, Senior Asset Manager, Madison Park Development Corporation
- Craig Staswick, CPA, Partner, Novogradac & Company LLP
Overview
Reaching Year 15 in a LIHTC project is a pivotal moment, and often the first chance for a general partner to acquire full ownership and chart the property’s future. But before you make major decisions, you need a clear grasp of your legal rights, financial position, and partnership obligations.
In this CHAM 2025 Conference session, an attorney, CPA, and experienced asset managers team up to break down what your Limited Partnership Agreement really says, how to pinpoint the end of your compliance period, and how capital accounts influence exit negotiations. Using real-world examples they explain timelines, transaction costs, and the interplay between legal terms and financial realities.
What You’ll Learn
- How to locate and interpret key documents, including Form 8609s and LPAs, to determine your Year 15 date.
- The differences between a Right of First Refusal and a Purchase Option, and why you may want both.
- How “waterfalls” in your LPA affect distributions at sale or refinancing.
- The role of capital accounts in calculating exit prices and potential tax consequences.
- Common red flags, like forced sale provisions, and how to address them early.
- Steps to assemble your Year 15 team and budget for transaction costs.
Key Takeaways
- Start planning in Years 10–13 to avoid missing critical deadlines or losing negotiation leverage.
- Understand your investor’s goals as well as your own to keep partnerships productive.
- Budget for both direct transaction costs and related expenses, such as capital needs assessments and agency consent fees.
- Keep a “Year 15 deal book” so key provisions and financial benchmarks are easy to access when staff transitions occur.