How To Calculate Equity Contribution for Capital Stack from LIHTC Awards - William Mejia

Have you ever wondered how much equity do Low Income Housing Tax Credits Provide Affordable Housing Developers to help fund their Capital Stack?Did you know that placing your project in a Qualified Census Tract (QCT) or Difficult Development Area (DDA) could mean millions in equity?  Are you curious about how Low-Income Housing Tax Credits (LIHTC) work? William Mejia unpacks the math and strategies behind turning a LIHTC into Equity! He even shared an example with hypothetical numbers where you can turn a $50M eligible basis into over $23.4M in equity with just the right incentives! From Qualified Census Tracts (QCTs) and Difficult Development Areas (DDAs) to the impact of pricing tax credits at 90¢ per dollar, we explain every detail.  On the latest episode of Affordable Housing & Real Estate Investing, we covered:- How LIHTC generates tax credits annually for investors... and how it turns into Equity for Developers!- Why placing your project in a QCT or DDA can give you a equity boost.  - The impact of small pricing differences in sales of LIHTC (e.g., 87¢ vs. 90¢) — on total equity- What costs are ineligible to be included in the basis for LIHTC- The role of federal incentives in providing equity and reducing borrowing needs.  Whether you're a developer, investor, or just passionate about affordable housing, this video breaks down the key factors to obtaining alternative funding for your project. Learn how LIHTC can be a game-changer in making your affordable housing mission a reality!Don't forget to follow William Mejia on Linkedin:https://www.linkedin.com/in/wamejia/DISCLAIMER - all information & details shared are meant to be for entertainment purposes only. This is not legal, financial, insurance, tax, or investment advice. This is not a solicitation for any investments and should not be construed as such in any form.All investments have risks. This is not an offer to purchase securities.📌Check out https://affordablehousing.io to stay up to date on our latest content and project updates by joining our community full of Affordable Housing investors!00:00 Podcast Trailer02:56 Intro06:55 What is LIHTC and How Does It Work?08:12 What is the Difference in Percentage of Equity Provided via 4% and 9% Tax Credits for Real Estate Development?10:32 What Are The Chances of Winning 9% LIHTC? What do you need to score?13:36 How to Score your LIHTC Application! How Can Consultants Help? 20:00 What is Deeply Subordinate Debt?21:05 What is the sequencing for Flow of Funds in an Affordable Housing Development?21:32 How do you manage the flow of funds?26:37 How do you score points on your LIHTC Application?33:28  How Much Equity Does LIHTC Provide For The Capital Stack? Watch This Excel Example!35:25 What costs are ineligible for LIHTC Tax Basis?39:08 What Are The Exit Strategies for Low Income Housing Tax Credit Developments? 43:26 What is a Tax Credit Resyndication for an Affordable Housing Development?50:30 Why Is Affordable housing  (i.e. lack of supply) hard to solve for?52:05 Where/How to contact Will?#LIHTC #AffordableHousing #RealEstateInvesting #EquityBoost #TaxCreditStrategies #QCT #DDA #CapitalRaising #RealEstateMath #HousingDevelopment