Hypothetical Case Study: 4 Percent LIHTC Project

Total project development cost is $16,207,635.

Project overview : The project is an example of a direct investment by a bank in a 4 percent LIHTC project financed with tax-exempt private activity bonds. The project involves the new construction of 128 affordable rental units. The project sponsors commit to set aside 40 percent of the units at or below 60 percent of the AMI, and 100 percent of the units to those at or below 60 percent of AMI.

Tax credit project financing : The tax credits available to this project are calculated in table 6. In this example, a bank invests in a partnership that used 4 percent LIHTC allocations to provide $3,687,340 in equity financing for the construction of this low- income housing project. Just over half of the financing of the project, $8,265,894, was from the sale of tax-exempt private activity bonds.

Sources and Uses of Funds
Equity Calculation

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: 916-234-3958.

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.

© 2009-2022 GroupOne Company. All Rights Reserved.