Learn the Basics: Housing Tax Credits 101

July 24 - 25, 2008
The Fairmont San Francisco
San Francisco, CA

Who should attend  |  Why you should attend   |  Speakers Agenda   |  Price  |   Instructional Information   |  Hotel Info Registration Info  |  Accreditation   |   Brochure   |   Sponsors

Sponsored in part by:

Who Should Attend

• Owners, developers, syndicators, property managers, and applicable staff and advisors who need a basic understanding of how the low-income housing tax credit works.
• Investors, lenders, underwriters, and others in the housing finance community looking for straightforward and practical analysis of the business as well as the technical issues surrounding today's use of the Low-Income Housing Tax Credit.
• Housing agency and community development staff, non-profit representatives, and others who want step-by-step information on the use of the Low-Income Housing Tax Credit and how it fits into the overall development process.
• Real estate and tax attorneys, accountants, and other advisors to tax credit participants who need an overview or update of the fundamental rules, techniques, and practices applicable to today's transactions.

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Why You Should Attend

The Low-Income Housing Tax Credit (LIHTC), already a wellknown and highly successful development tool, continues to grow in importance. Particularly in these challenging times, anyone involved in affordable housing development, finance, investment, and management needs to be fully in command of the LIHTC program and the various strategies being applied in transactions utilizing the LIHTC. This popular seminar more than meets that need.

Sold-out every time it's offered, this seminar is intended for newcomers to the field as well as those seeking an up-to-the-minute refresher course. This seminar presents the basic rules governing the LIHTC and how the tax credit is utilized in today's transactions; a "hands on" analysis of a financial model generated for a typical tax credit project; an overview of the legal, accounting, and business issues involved in negotiating transactions; a practical look at tax credit transactions from the lender, agency, developer, and investor perspectives; special issues that arise in deals involving non-profits; the basic rules for when tax credits are used together with tax-exempt bonds; and real world advice on the occupancy and compliance essentials that are critical to the long-term success of every project.

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The Speakers

Wylie S. Allen, Esq. [ bio ]
Counsel
Nixon Peabody LLP
Los Angeles, CA

Faith K. Bruins, Esq. [ bio ]
Partner
Nixon Peabody LLP
San Francisco, CA

Molly R. Bryson, Esq. ** [ bio ]
Partner
Nixon Peabody LLP
Washington, DC

James F. Duffy, Esq. ** [ bio ]
Partner
Nixon Peabody LLP
Boston, MA

Thomas A. Giblin, Esq. ** [ bio ]
Partner
Nixon Peabody LLP
Boston, MA

Michael Kotin, CPA
Principal
Kay-Kay Realty
Scottsdale, AZ

Beth Mullen, CPA
Managing Principal
Reznick Group, P.C.
Sacramento, CA

Sonia A. Nayak, Esq. [ bio ]
Associate
Nixon Peabody LLP
San Francisco, CA

Daniel J. Smith
Partner
Novogradac & Company LLP
Dover, OH

Catherine Talbot
Principal
MMA Financial, LLC
San Francisco CA

Terry Wellman
Vice President
PNC MultiFamily Capital
Irvine, CA

**Planning Committee

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Agenda

Thursday, July 24, 2008

7:30 A.M.
Registration and Continental Breakfast

8:30 A.M.
Laying the Foundation: The Basic Rules Governing Today's Housing Tax Credits Projects.
This succinct overview of the major rules from the IRS, the states and other agencies governing use of the low-income housing tax credit will include:

• How housing tax credits fit into the development, timing, and financing of your project
• Key players and typical transaction structures
• Credit allocation at the state level - including qualified allocation plans, project evaluations, set-asides and more
• How to calculate the amount of the tax credit
• Determining credits for acquisition with rehabilitation
• Compliance requirements, extended use and recapture

10:00 A.M.
Networking Break

10:15 A.M.
Laying the Foundation (Continued)

12:00 P.M.
Complimentary Networking Lunch

1:00 P.M.
Understanding the Numbers: Sources and Uses, Pro Formas and More
Interpreting technical financial information is essential in evaluating a tax credit project or any project. In plain-English terms, accounting and legal experts will discuss:

• Pro Formas and More
• Determining the flow of funds
• Allocating the credits among partners
• Determining what development costs are included in eligible basis
• Structuring the financing to maximize tax credits: examples of successful techniques

2:00 P.M.
Networking Break

2:15 P.M.
Understanding the Numbers (Continued)

3:15 P.M.
Networking Break

3:30 P.M.
Negotiating the Terms of the Basic Business Deal
In a role-playing scenario illustrating the developer and syndicator perspectives, this session will examine the key business terms typically negotiated between the developer and the syndicated investor including:

• Payments of equity capital - how much and how fast: conditions for release of the investor's equity
• Tax credit adjusters
• Developer guarantee provisions for completion, operating deficits, etc
• Payment of developer's fees and issues that arise when the developer's fee is deferred
• Repurchase obligations, general partner removal and other provisions.

4:15 P.M.
A Practical Look at the Housing Tax Credit Program from Industry Insiders
This practical session will focus on the tax credit program from the perspectives of lenders and investors.

5:15 - 7:00 P.M.
Networking Cocktail Reception for All Participants and Speakers

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Friday, July 25, 2008

7:30 A.M.
Registration and Continental Breakfast

8:15 A.M.
The California Perspective: Maximizing Profits with the Welfare Tax Exemption and Solar Tax Credits
This session will focus on ways that owners in California can utilize the California Welfare Tax Exemption and Solar Tax Credits to improve operations at your tax credit property.

• Qualifying for and maintaining the California welfare tax exemption
• Structuring your California transaction to include solar tax credits
• Combining the solar tax credit and low-income housing tax credits

9:00 A.M.
Using Tax-Exempt Bonds with Housing Tax Credits: Sorting Through the Rules
This session will focus on the regulatory and technical issues that arise when housing tax credits and tax-exempt bonds are combined in a single transaction.

• The key players and rules in tax credits/tax-exempt bond transactions
• What does it mean to be "financed" with tax-exempt bonds?
• What is the 50% test and how are total development costs determined?
• Timing issues that arise in tax exempt bond/tax credit transactions and their impact on investment and finance.

10:00 A.M.
Networking Break

10:15 A.M.
Special Issues for Projects Involving Non-Profits
When non-profits are involved in housing tax credit transactions, additional issues arise, including:

• Maintaining tax-exempt status in today's transactions
• Structuring joint ventures with for-profit partners
• Depreciation and other special tax issues
• Non-profit options and rights of first refusal to acquire the property after the compliance period
• Qualifying for tax credits under the 10% nonprofit set-aside.

10:45 A.M.
Critical Tax Issues in Today's Tax Credit Transactions
An in-depth look at certain critical tax issues that arise using housing tax credits

• Meeting the 10% Carryover Allocation Test
• Issues relating to Deferred Development Fees
• Compliance with the 10% Anti-Churning Test when resyndicating a property

11:30 A.M.
What You Need to Know Up Front About Compliance and Occupancy
Closing the transaction is only the start. This session will introduce the ongoing monitoring, compliance and occupancy rules that apply to housing tax credit properties.

• Rules on minimum set-asides, tenant income restrictions, rent calculations, utility allowances and other fundamental aspects of tax credit compliance.
• How to administer the "next available unit" rule.
• Hazards in implementing your management program - and how to avoid them.
• State compliance monitoring.

12:30 P.M
Conclusion of the Program

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Instructional Information

Course level: This seminar, designed for individuals with a basic familiarity of the Low-Income Housing Tax Credit will provide a general overview of the tax credit program and its rules and practices as these work today.

Prerequisites: There are no formal pre-requisites for this program, other than a basic working knowledge of affordable housing development and finance, and no specific advanced preparation is required.

Teaching Methods: All sessions will be presented live, by on-site speakers. The teaching modes will include individual presentations, panel discussion, role playing and question and answer sessions. A specifically prepared book of reference materials described on the inside panel of this brochure will be distributed to each registrant at the start of the program.

Special Needs: Any person with a disability who believes he/she may need reasonable accommodations to participate should contact IPED no later than 4 weeks prior to the conference start date.

Recommended Dress: Business Casual

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Accreditation

IPED will seek approval for continuing legal education credits on an as needed basis. Please indicate on your registration form if you need these credits. State bar associations have the final authority on the acceptance of individual courses and IPED will do everything to ensure these requirements are met when seeking approval.

IPED is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN 37219-2417, www.nasba.org. In accordance with the standards of the National Registry of CPE sponsors this course has been granted 10 CPE Credits. In accordance with the standards of the National Registry of CPE sponsors this course has been granted 10 CPE Credits.

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Registration Information

The registration fee includes all applicable sessions, refreshments, lunches, receptions and reference and/or course materials unless otherwise noted. Payment must be received by July 14, 2008 to ensure your registration. IPED accepts Visa, MasterCard and payment by check. Government purchase orders and American Express are not accepted.

Fees and payment
$895 General Registrant
$595 Non-profit/Government/Education Organization Fee (Proof of tax exempt status must accompany registration.)
Early Registration Offer: Register by May 30, 2008 and save $50.00. This discount cannot be combined with group discounts.

Payments must be made by check or credit card, in advance of the program.

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Group discounts

For 3-5 registrants, deduct $50 per person from the applicable rate. For 6 or more registrants, deduct $100 per person from the applicable rate. To receive this discount, you must register all individuals in one transaction. This discount CANNOT be combined with any other offer, including the Early Registration Offer.

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Conference Site and Hotel Information

The Fairmont San Francisco
950 Mason Street
San Francisco, CA 94108
800-441-1414
www.fairmont.com/sanfrancisco

IPED has secured a block of rooms at a rate of $245 per night through June 23, 2008. Reservations made after June 23 - or after the room block has been filled - will be taken on a space available basis and higher rates may apply. To make your reservation, please contact the hotel and ask for the IPED Room Rate.

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Cancellation Information

Cancellations must be received in writing via mail, fax or e-mail to the IPED office. Mailing address: IPED, Inc., 401 9th Street, NW, 8th Floor South, Washington, DC 20004. Fax: 202-585-8748. E-mail: info@ipedinc.net.

• Cancellations requested on/before July 13, 2008, are eligible for a refund minus a $225 administrative fee.
• Cancellations requested on/after July 14, 2008, forfeit the entire registration fee.
• Substitutions allowed on a case-by-case basis. Fees, dates, details, and Cancellation Policy subject to change. In rare instances when a conference is rescheduled or cancelled, IPED will fully refund the registration fee, but is not responsible for other costs incurred, such as nonrefundable airline tickets..

Questions? Please contact IPED, Inc. at 202-331-9230 or info@ipedinc.net

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Artwork at top of page: "House", 1988, Jennifer Bartlett
Jennifer Bartlett (b. 1941, Long Beach, California) graduated from Mills College in Oakland, California, and earned her BFA and MFA from Yale University. Since her first one-person exhibit in New York in 1974, she has had numerous one-person shows and has participated in major exhibitions at institutions such as the San Francisco Museum of Art; the Albright-Knox Gallery, Buffalo; the Walker Art Center, Minneapolis; the Museum of Art, Carnegie Institute, Pittsburgh; the Brooklyn Museum of Art; and the Milwaukee Museum. Jennifer Bartlett is an internationally recognized painter and printmaker. Her early work, which was strictly limited to grids, graphs, and dots, has evolved to include an expanded view of the possibilities of classifying and cataloging. Recently she has created a set of works linked by the image of a square and triangle immedi­ately identifiable as a house.
Robert Brown Gallery, (202) 483-4383

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