Introduction to the LIHTC Financial Model - Development Costs, Basis, Operating Pro Forma and Tax Benefits
1 hour 30 minutes
About This Training
While the limited partnership agreement is the legal contract for a LIHTC project, the financial model is a roadmap of investor expectations to which the tax credit developer is held accountable. The ability to navigate the model is an essential skill for asset managers and other project stakeholders. If financial model training is on your 2023 professional development plan, or you're new to the industry and would benefit from guided tour of this multi-layered investment tool, then this training is for you.
Join Vinnie Viola, Principal of Birch Island Real Estate Consulting, LLC, for an insightful 90-minute overview of the key assumptions and exhibits in a typical tax credit financial model. The training examines development sources & uses, depreciable & eligible basis, income & expense drivers and make-up of overall investment yield for a fictitious project known as Jackman Village Apartments, LP. The training also include a series of 'what if' scenarios to illustrate how seemingly small variances from initial underwriting can adversely impact a LIHTC project's operations, expected investor benefits and capital contribution amount.
- At the completion of training, attendees will be able to:
- Identify key exhibits in a LIHTC financial model.
- Understand sources of information used in the creation of the tax credit and operating pro forma projections.
- Describe and spot key assumptions that drive tax benefits (credits and losses) and operating cash flow.
- Understand the concepts and terms used to mitigate perceived / real risks for a typical LIHTC project.
- Understand how seemingly small variances from underwriting can impact a project's long-term financial health and developer fee.
- "Hit the ground running" when the deal closes.