As a general rule, when property is given to a qualifying charitable organization, the amount of the deduction is the fair market value of the property at the time of the gift. However, if the property is transferred subject to a liability, the "bargain sale" provisions of the Code require that the transfer be broken down into two parts: the gift and a deemed sale.

GLCF Promotions, Danosky Leaves GLCF and Moves to KMG Prestige...

Preserving the existing stock of affordable housing is crucial to any long-term strategy for meeting the housing demands for low and moderate income residents. A critical aspect of preserving existing housing is the ability to recapitalize properties in order to keep them competetive with newer housing that has been developed over the years.

One of the most recent affordable housing issues our firm has addressed for our clients centers around the expiration of some of the original Low Income Housing Tax Credit (LIHTC) rental properties developed over fifteen years ago. Owners of these facilities are now considering available alternatives, including property improvements, the potential sale of the property, and whether to remain a LIHTC property or convert to a "market rate" complex.

What's the first thing you should do to figure out your "Yr. 15" strategy? How about finding (and dusting off) the Partnership Agreement that was signed way back when the development was getting underway?

The recent partnership developed between Medallion Management, Inc. and St. Vincent Catholic Charities of Lansing assists refugees coming into the United States in the process of resettlement. This involves finding a suitable housing arrangement for themselves and their families, offering assistance in creating a new life as well as providing interpreters to overcome language barriers.

The low-income housing tax credit (LIHTC) has helped make affordable housing a reality for millions of Americans. However, the major tax benefits that make LIHTC projects attractive to investors are fully realized in 14 years. Then what?

In "Year 15" transactions, financing issues shift from the existing tax-exempt bonds/4 percent Low Income Housing Tax Credits structure to a proposed "post Year 15" structure -- whether using the current owner or new owner. For simplicity, this article focuses on "pass through" projects -- that is, facilities separately financed with bonds issued under the authority the state housing finance agency (HFA) rather than projects financed under its direct loan program.