Buyback of Year 15 Projects

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.