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What is CB Richard Ellis’ role in the low income housing tax credit (LIHTC) industry? |
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The role of CB Richard Ellis National Tax Credit Advisory Group, in tandem with CBRE|Melody, in the LIHTC industry is to provide developers, investors and lenders complete brokerage and debt solutions. This includes Year 15 properties, workouts, as well as properties that have reached stabilization where the General Partner is looking to monetize its investment early and move on to the next project. |
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How long have you been working in affordable housing? |
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I have been working in the affordable housing industry since 1992 and most recently was with a leading tax credit equity syndicator.
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How much of your business involves housing tax credits? |
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We estimate the CBRE National Tax Credit Advisory Group will generate approximately $400 to $500 million in annual transaction volume. |
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What don’t people know about CB Richard Ellis? |
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CB Richard Ellis is the national market leader in the sale of Investment Properties, as evidenced by our 2006 transaction volume of $52.7 billion. Of this amount, the Multi-Housing Group accounted for over 22.5 billion of transaction volume making it the “Top U.S. Apartment Broker” according to Real Capital Analytics.
CB Richard Ellis understands the unique challenges and opportunities that come with investing in LIHTC properties. Our professionals choose to specialize in this sector and devote their careers to knowing the properties, investors and owners that trade in this space. The National Tax Credit Advisory Group has significant experience and expertise in all facets of a LIHTC transaction, including origination, underwriting, compliance, asset management, investor relations, workouts and disposition strategies. We understand the LIHTC multi-housing business and strive to build client relationships that endure. |
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What does CB Richard Ellis do better than others? |
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From a single asset in a local market, to a complex portfolio across multiple locations, each assignment benefits from our experience. Our synchronized approach to marketing brings our owner clients to the market, and buyers to the opportunity, with unprecedented speed, efficiency and execution. We anticipate trends, seize opportunities and leverage our network to help our clients realize their investment goals. |
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Describe a recent project that you worked on. |
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I recently led a team in the disposition of 60 LIHTC assets totaling 4,000 units in eleven states. The disposition strategy included asset sales and the sale of the General Partnership Interest. |
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How has the Low Income Housing Tax Credit Program changed over the years? |
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Since the program’s inception, the industry has become more sophisticated. While early investors tended to be high net worth individuals in non-guaranteed funds, the industry is now dominated by institutional investors through complex fund executions. |
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What do you think the program does particularly well? |
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The program does a very good job of efficiently leveraging private and public sector dollars into a substantial amount of quality affordable housing where it is needed the most. |
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What do you believe is the biggest challenge the program faces going forward? |
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Efficiently dealing with the growing number of Year 15 properties. Owners will need to develop a thorough understanding of the various options available at the end of the initial compliance period. |
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What changes would you like to see made to the program? |
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Agencies and industry leaders must partner together to develop an effective strategy to maintain, support and preserve existing affordable housing communities. There continues to be an overall shortage in the number of affordable units across the country, despite the continued new projects developed under the LIHTC program. |
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How can the program better serve people and communities in need? |
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Developers and community leaders need to develop an understanding of how to use LIHTC and New Market Tax Credits to encourage community revitalization. |
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