Our Banking & Financial Services Practice Team has developed unique expertise in advising financial institutions on construction and rehabilitation in affordable housing and community development projects.
We advise clients in the initial structuring of the transaction, whether it’s a traditional construction loan, a bond purchase, a letter of credit issuance or a combination thereof. Our attorneys alert clients to issues that may arise with respect to the project’s anticipated use of Low-Income Housing Tax Credits, New Markets Tax Credits, Historic Tax Credits or Brownfield Tax Credits, as well as regulatory agreements and use restrictions.
Our attorneys prepare and negotiate intercreditor disbursement and construction escrow agreements with various housing authorities, financing agencies and development corporations – all with differing program requirements (including the HOME and TEL Programs, as well as OMH Funds, Capital Funds, TIF and HUD Funds).
We assist our construction lending clients in their arrangements with the New York State Housing Trust Fund Corporation, the State of New York Mortgage Agency, the New York City Employee Retirement System and other financing agencies and housing authorities across the country. In addition, we assist our lending clients with permanent take-out financing and insurance as well as converting construction loans to the permanent phase.