Low income housing tax credit properties : non-profit disposition strategies in the Commonwealth

This thesis examines how non-profit owners in Massachusetts have maintained affordability and ownership of Low-Income Housing Tax Credit (LIHTC) properties after the initial fifteen-year compliance period, at the lowest possible cost. The intent is two-fold: to inform non-profit project sponsors about strategies leading to low-cost outcomes, and to advocate for policies that promote such low-cost outcomes. The impacts of the players in LIHTC deals, Massachusetts state policy, the original capital structure, and legal partnership arrangements on the strategies that non-profit owners can pursue to maintain control of tax credit properties are considered. Specific outcomes described include bargain sale and charitable contribution, debt-plus-taxes or right of first refusal, and transfer of the limited partnership interest. Themes include the tension between for- and non-profit partners, public and private interests, and federal and state policies. Because the LIHTC is administered on a state-by-state basis, the Massachusetts regulatory environment and state housing resources play a central role in shaping disposition outcomes in the Commonwealth.