We Get Bonds & Tax Credits.
We understand what is needed to assist lenders in making sure borrowers will qualify.
Tax Credit Finance and Bonds
Rosenberg Martin Greenberg’s Real Estate Finance Group has considerable experience representing lenders in structuring and documenting financing of construction and development projects involving multiple sources of financing, including transactions involving commercial real estate designated as certified historic structures.
In addition, attorneys in this group have represented lenders on mixed-use real estate development projects involving a variety of financing sources and unique methods of securing loans, including the use of:
- Federal Historic Rehabilitation Tax Credits
- New Market Tax Credits
- Tax Increment Financing (“TIF Bonds”)
- other state and local funding options
Tax credit financing
Economic downturns and unfavorable credit market conditions in recent years have continued to generate intense interest in a wide range of alternative financing methods for capital projects. The team of tax credit finance attorneys at Rosenberg Martin Greenberg stand ready to represent lenders, investors and others wishing to utilize these opportunities as means to improve not just their own bottom lines, but also their communities.
Federal historic tax credits
The federal Historic Preservation Tax Incentives program provides tangible benefits for developers by way of a 20 percent tax credit for the rehabilitation of certified historic structures, a 10 percent credit for rehabilitation of non-historic structures put into service prior to 1936, and other potential tax benefits for developers willing to grant historic preservation easements on or around assets slated for development.
Obtaining the benefits of these programs can be a complex undertaking, and therefore it is wise for lenders or developers to consult with attorneys experienced in assisting with such transactions. Toward that end, RMG attorneys can negotiate exit strategies, master leases, up-front agreement structuring and necessary partnership and operating agreements that ensure fulfillment of our clients' critical objectives.
New market tax credit programs
Another crucial method of facilitating development and economic growth during difficult financial times is known as the New Markets Tax Credit (NMTC). This vehicle is intended to boost capital in-flow to lower income rural and urban communities and businesses by offering tax benefits to private entities willing to invest in them. Investors can receive a substantial tax credit, but the necessary negotiations leading to a successful transaction can be complicated and highly detailed, making the help of seasoned tax professionals truly invaluable to investors, leverage lenders, community development organizations and business enterprises alike.
The attorneys of Rosenberg Martin Greenberg regularly serve as counsel for NMTC-involved transactions, providing:
- Guidance on transaction structuring, identifying available incentives and finance sources and risk aversion strategies
- Issuance of opinions for tax credit investors and other interested entities
- Negotiating, structuring and documenting all compliance requirements and credit provisions
- Consulting on state and federal reporting requirements
- Formation of community development enterprises and completion of all required NTMC allocation applications
- Documentation of loans and investments and coordination of transactions and necessary closings
Construction loan financing & tax exempt bonds
Rosenberg Martin Greenberg routinely represents parties to transactions involving taxable and tax-exempt bond financing throughout the Mid-Atlantic region, standing ready to serve as bond counsel, bond purchaser counsel and underwriter counsel in a range of construction contexts encompassing housing construction projects, stadium and theater construction, hospital expansions, downtown redevelopment initiatives and more. Whether offering stand-alone representation or as a supplement to existing in-house general counsel services, our team can render the comprehensive assistance developers and construction loan lenders seek when project stakes are high.
We at Rosenberg Martin Greenberg are committed to facilitating transactions that hold tremendous promise not just for developers, but for the entire region. We invite you to contact us to learn more about how we can help with your historic rehabilitation tax credit, tax increment financing, new market tax credit or other construction loan finance project in Virginia, Maryland, Delaware, DC or elsewhere in the Mid-Atlantic region.
Bonds and Tax Credits Team
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