This paper will be of interest to you if you are involved in Low-Income Housing Tax Credit deals and some or all of the following applies to your deal:
• High operating losses in excess of original projections
• A large deferred developer fee that remains unpaid after construction completion
• The investor limited partner’s tax capital account is decreasing each year faster than originally projected
• The partnership agreement calls for equity adjusters or other penalties for failing to provide the projected amount of low-income tax credit or tax losses to the investor limited partner
• You would like clarity on the partnership tax rules that impact the allocation of tax losses and credits to partners.