The Low Income Housing Tax Credit (Housing Credit) has been a powerful tool for creating affordable homes, but the end of the investor compliance period (Year 15) can be a critical point for ensuring that homes remain affordable for the long term and stay in the hands of housing providers committed to the residents and communities.
SAHF published a guide sharing best practices and insights from asset managers from five large successful nonprofits overseeing more than 250 properties through Year 15 transitions. Seasoned practitioners report that every property is different and that every transaction requires negotiation beyond what is in the partnership documents. But with preparation, long term preservation can go smoothly and support affordability for current and future residents of the property, financial and operational health of the housing provider.
Planning for long term preservation begins when a transaction is structured and continues through the life of the Housing Credit investment and beyond. This guide reflects SAHF’s commitment to preserving affordable homes financed through the Housing Credit by offering best practices, key questions for consideration and valuable lessons from the field on Year 15 planning and preservation.
Case Study: Year 15 Planning and Preservation
For insights and strategies on preserving long-term affordability in Housing Credit properties—particularly the challenges nonprofits face when exercising their Right of First Refusal (ROFR) at Year 15—check out our companion piece.