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LIHTC SERVICESUnparalleled leadership in navigating tax, accounting, valuation and other issues relatedto financing, developing and operating low-income housing tax credit properties.Knowledge Experience Service

About the FirmNovogradac & Company LLP works extensivelyNovogradac & Company has encountered andin the low-income housing tax credit (LIHTC)resolved many challenges in its more than 25industry,affordableyears as a leader in the LIHTC industry. Thesehousing properties by providing them with tax,challenges provided Novogradac professionalsaccounting, auditing, consulting, and marketwith an extraordinary understanding of bothstudy and valuation services. Our expertisegovernmentin guiding clients though the underlying tax,We are particularly proud of our reputationstructuring and business issues of the taxas an affordable housing leader, whichcredit program positions us to provide clientsallows us to exercise influence in advocatingwith unparalleled service.for the preservation and expansion of theassistingownersofandindustryrequirements.LIHTC program.The fundamental mission at Novogradac& Company is to focus on clients’ businessThe firm’s skilled professionals specialize inobjectives.withhelping clients with all aspects of developing,creativeinvesting, selling and other technical andsolutions to complicated transactions andpractical issues that relate to a LIHTCmeet their needs for direction as they navigatedevelopment. Although Section 42 might bethe intricacies of their LIHTC transactions.a small part of the Internal Revenue Code, itWecomprehensiveprovideservices,themofferis essential to have knowledgeable advisorsto aid in understanding the complexities ofthis program.Armstrong Place Senior Housing in San FranciscoPhoto Courtesy: David Baker Partners Architects, Photo by Brian Rose

Professional ServicesNovogradac and Company LLP provides services todevelopers, syndicators, investors, lenders and a hostof other unique clients. The firm’s services are based oncomprehensive knowledge and broad experience. Thoseservices generally include: Accounting services Transaction services/tax consulting Investor services and consulting Compliance services Valuation and market study servicesunparalleled and aids our clients with the followingspecific accounting services: Annual audits of financial statements Annual tax return preparation 10 percent test reports 50 percent test reports Good cost/bad cost analysis Tenant file testing Final cost and eligible basis certifications LIHTC applications Placed-in-service packages Debt service coverage ratio/break-even analysesAccounting Services Developer experience reportsThe firm offers cost-effective accounting services to Loan staff engagementsclients and takes care to understand fully the nature Litigation support and expert witness testimoniesof the client’s business. Novogradac’s professionals Solar panel basis certifications General partner experience reportsprovide tax and accounting advice as needed throughoutthe process. Our expertise in the LIHTC industry isThe Landings at Winding Walk, Chula Vista, Calif.Photo: Courtesy of Lynn SchmidStudio 15 Apartments in San Diego, Calif.Photo: Courtesy of Affirmed Housing Group

Transaction Services/Tax ConsultingInvestor Services and ConsultingAlthough LIHTC developments can be a challengeLIHTC developments would not be feasible withoutto structure, the appropriate guidance from ourinvestors who play an important role in the financingprofessionalsstressfulof LIHTC transactions. Our engagement team canexperience. We address and resolve complex businessprovide investors with services that put them at easeand tax issues and assist our clients throughout thewhen contemplating whether or not to invest in aentire structuring, financing and application process.LIHTC property. We also provide services that monitorOur specific services in this area include:partnership activities throughout the compliancecanmitigateapotentialperiod to help ensure the tax credit investment is free Financial forecasts and analysesof problems and potential recapture. Our investor Arbitrage calculationsservices include: Qualified contract calculations Tax capital basis analyses Quarterly tax estimates Financial forecasts and analysis of return oninvestment BRAC consulting Due diligence reviews Cost segregation analyses 704(b) capital account analysis Capital adjuster calculations Break-even and debt service coverage ratiocalculations Property compliance reports Forensic accounting Valuation and appraisal Market analysis Portfolio performance and analysisWest Wood Oak Apartments in Fairfax, Va.Photos: Courtesy of Eric Taylor

Compliance ServicesLIHTC properties are required to adhere to extensive compliancerequirements. It is extremely important that these propertiesconform to the IRC Section 42 requirements. We assist ownersand property managers in setting up complete tenant filesensuring compliance requirements are met. We can also reviewall of a development’s tenant files and report any deficiencies,increasing the likelihood that a client’s files will pass reviewsthat are conducted by state agencies. Our compliance servicesalso assist our clients when they are acquiring an acquisition/rehabilitation development or purchasing a general partnerinterest in an existing partnership that owns a LIHTC property.Property compliance due diligence in these types of transactions isa key component to ensure there will be no issues down the road.Valuation and Appraisal ServicesNovogradac & Company’s GoVal Group specializes in providinghigh-quality market research, valuation and affordable housingdevelopment support. The complexities of today’s marketplacerequire a thorough understanding of a wide variety of housingprograms and how local markets affect their success. Novogradac& Company takes pride in its blending of primary research withavailable demographic and secondary data to help determine theviability of a proposed development. The GoVal Group completesnearly 1,200 market studies and appraisals each year throughoutthe United States and its territories. The purpose of these studiesis to assess the market feasibility and/or, in the case of affordabledevelopments, determine the value of LIHTC properties, as wellas valuing partial partnership interests and assisting with Year 15valuation issues. Our expertise extends to additional subsidyoverlays such as public housing, HUD Multifamily AcceleratedProcessing (MAP), USDA Rural Redevelopment (Section 515,538), Section 8, Section 236 and Section 202 housing. Further,Novogradac is an industry leader in navigating the HUD RentalAssistance Demonstration (RAD) program and can assist withthe valuation of public housing developments through the entireRAD process.Top Photo:Parkview Gardens in MiamiPhoto: Courtesy of Carrfour Supportive Housing Inc.Bottom Photo:Claremont Villas in Claremont, Calif.Photo: Courtesy of Security Properties

Novogradac & Company LLP is a licensed user of theESRI Business Analyst GIS software. The softwareallows us to do in-house GIS and data analysis oflocations nationwide. With this ArcView compatiblesoftware, we can analyze any spatial area–our systemcontains all U.S. political boundaries, census tracts,block groups and blocks. We can also input customboundaries to focus our analysis on customer definedareas such as by a specified radius from an identifiedpoint or custom-drawn polygon.LIHTC Resources LIHTC Working Group:www.lihtcworkinggroup.comNovogradac Publications,Periodicals, and Software Low-Income Housing Tax Credit Handbook Low-Income Housing Tax-Exempt BondHandbook LIHTC Year 15 Handbook LIHTC Property Management Handbook New Markets Tax Credit Handbook Nonprofit Housing Developers Handbook Four annual national LIHTC conferences Renewable Energy Tax Credit Handbook Four annual LIHTC basics workshops Historic Rehabilitation Handbook Various LIHTC property compliance workshops GAAP Accounting for LIHTC and NMTC Multiple advanced LIHTC financing workshops Deal Negotiation Documentation Manual Tax, audit and LIHTC trainings for private Introduction to Low-Income Housing Tax Creditsaudiences LIHTC webinars hosted throughout year fornational audiences On-demand course that can be viewed at Introduction to Historic Tax Credits Introduction to HUD Multifamily Rental HousingPrograms Multifamily Rental Housing Operating Expensepurchaser’s convenienceArcadia Park Apartments in Columbia, S.C.Photo: Courtesy of Rick Smoack Photography Inc.Eden Issei Terrace in Hayward, Calif.Photo: Courtesy Eden Housing

Riverwalk Apartments in San Diego, Calif.Photo: Courtesy of Jim Doyle, APGS-Applied PhotographyNovogradac & Company LLP’s LIHTC Team LeadersMICHAEL NOVOGRADACManaging Partnermichael.novogradac @novoco.comSAN FRANCISCODAVID CONWAYPartnerdavid.conway@novoco.comDOVER, OHIOGEORGE N, TEXASMICHAEL MORRISONPartnermike.morrison@novoco.comSAN FRANCISCORENEE BEAVERPartnerrenee.beaver@novoco.comCLEVELAND, OHIOBLAIR KINCERPartnerblair.kincer@novoco.comWASHINGTON, D.C. METROBENTLEY IA, PENN METROBILL LETSINGERPartnerbill.letsinger@novoco.comLONG BEACH, CALIF.REBECCA ARTHURPartnerrebecca.arthur@novoco.comKANSAS CITY, MO. METRO

www.novoco.com www.taxcredithousing.comOn the Cover: Columbia City Station Apartments in Seattle, Wash.Photo: Courtesy of William Wright Photography

Photo Courtesy: David Baker Partners Architects, Photo by Brian Rose. . Eden Issei Terrace in Hayward, Calif. Photo: Courtesy Eden Housing Arcadia Park Apartments in Columbia, S.C. . On the Cover: Columbia City Station Apartments in Seattle, Wash. Photo: Courtesy of William Wright Photography .