Introduction to the LIHTC Financial Model - Development Costs, Basis, 15-Year Operating Pro Forma & Tax Benefits

Partner Events
Birch Island Real Estate Consulting


1 hour 30 minutes




About This Training
While the limited partnership agreement is the legal contract for a LIHTC project, the tax credit financial model offers a roadmap of the investor's assumptions and expectations for how the asset should perform over time-- remember, time = money. The ability to navigate the model cover to cover is an essential skill for asset managers and other project stakeholders. If your your 2024 professional development plan includes financial model training, or you're new to the industry and would benefit from a guided tour of this investment tool, then this training is for you.

​Join Vinnie Viola, Principal of Birch Island Real Estate Consulting, LLC, for an engaging and insightful 90-minute overview of the key assumptions and exhibits in a typical tax credit financial model. The training examines development sources and uses, depreciable and eligible basis, income and expense drivers and make-up of overall investment yield for a fictitious project known as Jackman Village Apartments, LP.  The training examines how seemingly small variances from initial underwriting can adversely impact a LIHTC project's operations, expected investor benefits and capital contribution amount. 

​Training Objectives

  • ​​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.

Is This Training for Me?
​This training is designed for stakeholders of LIHTC projects that would benefit from a guided tour of how the many inputs and exhibits to a typical investment model drive key outputs, mainly tax benefits, cash flow and residual value. The webcast is ideal for:

  • Junior fund managers
  • LIHTC asset managers and analysts
  • Developers that want an asset manager's perspective on the financial model
  • Junior acquisition analysts
  • Agency staff that review LIHTC projections for financial feasibility
  • Project managers responsible for delivering a project "on time" and "on budget."
  • Third-party service providers that work in the LIHTC field (e.g., construction monitors and architects)

NOTE: A basic understanding about the LIHTC program and real estate financial analysis is recommended.  ​​​Contact Vinnie at 617-905-6340 or with any questions.