CEI assists nonprofit clients to buy out the tax credit investor at the end of a project’s 15 year compliance period. CEI has assisted in the repurchase of several hundred properties since the earliest tax credit projects hit their 15-year marks in the early 2000s.
CEI services include:
- • early analysis prior to the end of the compliance period to review how project operations compare to projections and advice on appropriate actions to facilitate the future repurchase
- • at year 15, preliminary analysis of buyback potential based on project operation, capital accounts, and tax issues
- • review of option/right of first refusal language in partnership documents
- • assistance with securing an appropriate appraisal
- • negotiation with investor to ensure best possible terms for nonprofit to repurchase property with no or minimal cash expenditures
- • analysis and advising to assist sponsors in maintaining cash reserves in the project.