Our attorneys who focus on community development have unique expertise in advising financial institutions on the construction and rehabilitation of affordable housing projects and in closing community development transactions across New York State and beyond. We have experience working on community development projects, new construction projects, adaptive reuse and many other affordable housing developments.
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 tax credits. This can include federal and state Low-Income Housing Tax Credits, New Markets Tax Credits, Historic Tax Credits, Energy Investment 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, TEL and M.TEB Programs, as well as OMH and ESSHI Funds, Capital Funds, TIF and HUD Funds). Together with their experience in negotiating with developers’ and tax credit investors’ counsel, our community development attorneys are able to successfully and efficiently contribute to project closings for clients.
We assist our construction lending clients in their arrangements with the New York State Housing Trust Fund Corporation, the New York State Housing Finance Agency, the State of New York Mortgage Agency, the New York City Department of Housing Preservation and Development, the New York City Employee Retirement System, the New York City Housing Authority 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.