Generally, HOME PJs and LIHTC investors are not motivated by the same goals. The typical LIHTC investor is motivated by its financial interests. Project and investment decisions are made in the context of the tax implications and the financial impact on the investor. The investor purchases a 99.9 percent interest in the ownership entity awarded LIHTCs for which it receives a tax credit. This is a dollar-for-dollar credit against the investor’s tax liability for ten years, along with other financial benefits generated by the project such as:
- Operating losses resulting from the depreciation of the property
- Sharing of any net cash flow generated from the Net Operating Income of the project
- Benefits that may result when the investor exits the project.
PJs, on the other hand, are generally motivated by public policy objectives to provide affordable housing to meet the needs of low-income families in their communities who are rent burdened or living in substandard housing. PJs must be involved with the LIHTC project sponsors from the beginning of the development process to ensure that their policy objectives are met, to ensure long-term compliance with HOME affordability restrictions, and to negotiate the best return on the HOME investment.
Consulting Services We Provide
- Review public works preconstruction contracts
- Monitor DIR contractor/subcontractor certified payrolls
- Audit labor classification for each worker employed
- Review DIR pre-DAS 140/142 submissions
- Review CAC training fund contributions form CAC-2
- Review DIR Fringe Benefits Statement PW-26
- Monitor DIR wage determinations
- Audit fringe benefits allowances
- Review DIR holiday payment requirements
- Audit DIR travel & subsistence requirements
- Caltrans Labor Compliance
- County of Sacramento Labor Compliance
- City of Los Angeles Labor Compliance
- Los Angeles Unified School District Labor Compliance
- Federal Davis-Bacon Project Monitoring
- Federal DBE Implementation & Review
- Federal FAA AIP Goal Setting
- DIR & Davis-Bacon Training
- DIR Civil Wage Penalty Review
- Local-Hire Review (e.g., San Francisco)
- Skilled and Trained Workforce
Give us a call to discuss your labor compliance requirements.
This email is intended for general information purposes only and should not be construed as legal advice
or legal opinions on any specific facts or circumstances.