In 1986 Congress enacted the affordable housing credit to promote construction and renovation of existing structures to meet the need for affordable housing in households with income below specified levels. Congress authorized states to allocate tax credits to qualifying housing projects.
These credits allow projects to become economically feasible by attracting equity investment to offset the cost of development and operation of housing projects.
Tax credits are determined by development costs and are to be used by the property owners to offset their tax liabilities. IRS rules and regulations make it difficult for individual owners from using the credits so partnerships are formed between investors and developers to utilize these credits in an effective manner. Developers receive funds to complete their projects and investors receive a credit against their tax liabilities.
From application review and initial projections, to final cost certifications, the Sherbert Group works closely with all parties to structure deals that maximize the utilization of the low income housing tax credits generated by a project. Our expertise and knowledge of current market conditions allows us to work with our clients to develop projects that meet the demands of today's tight credit markets.
Investors, owners and developers trust the professionals at Sherbert Group to guide projects through the long and complicated tax credit process. Our audit and accounting specialists prepare all required filings accurately and timely. We prepare certifications for carryover allocations (10% test), financial analysis and projections, cost certifications for projects placed in service, reviews, agreed upon procedures, and independent audits of financial statements. Our tax professionals provide expert knowledge to structure partnerships to insure that IRS regulations are followed. The Sherbert Group specializes in tax return preparation for partnerships and the preparation of the K-1's to accurately report activity at the partner level. We also prepare corporation, S-corporation and individual tax returns.
State agencies and many of the most respected investors and developers in the affordable housing markets have put their trust in The Sherbert Group. Let us put our expertise to work for you.
