Accounting Services For Construction Companies
Affordable Housing Accounting Services
Thomas Stephen & Company, LLP has been active in the affordable housing industry since 1991, serving numerous developers, lenders, investors, syndicators, nonprofits, housing authorities and property managers. We provide an array of relevant services to meet the needs of the diverse groups involved in the development of affordable housing projects.
Affordable Housing Services:
– Audit and Assurance
– Low-Income Housing Tax Credit (“LIHTC”)
– Tax Exempt Bond Financing
– Government Assisted and Insured Programs
– Non-Profit Organizations
– Cost Certifications and Carryover Allocations
– Tax Advisory & Compliance
– Historic and New Market Tax Credits
– Transaction Structuring & Real Estate Advisory
Audit and Assurance Services
We perform independent audits in accordance with generally accepted auditing standards for a variety of affordable housing projects throughout the United States. Investors, lenders, executives and board members can rely on our experienced team of professionals for independent and reliable reports. Our firm is proud of its reputation for integrity, technical proficiency and its understanding of current issues facing the affordable housing industry.
Low Income Housing Tax Credits (“LIHTC”)
Firm professionals have assisted developers, owners and investors in navigating the complex state and federal rules applicable to the LIHTC. We have advised clients in connection with LIHTC applications, transaction structuring, tax credit syndication, tax credit compliance and other services designed to deal with the complexities of the LIHTC program. Through our extensive experience with LIHTC issues, we have developed working relationships with a number of affordable housing agencies including the Texas Department of Housing and Community Affairs, which enables us to effectively represent clients in connection with LIHTC projects.
Tax Exempt Bond Financing
Our firm’s audit and assurance team is well equipped to guide developers and project owners through the complexities of project financing through the use of private activity and 501(c) (3) tax exempt bonds. We have advised clients in connection with bond rebate calculations, Federal tax and securities law requirements, credit enhancement alternatives, hedging vehicles and the bond allocation process.
Government Assisted and Insured Programs
Our team possesses the experience with HUD financing programs and government compliance issues to effectively service owners and developers of government assisted, government insured and other regulated housing projects. Our services for HUD projects include financial statement audits performed in accordance with government auditing standards, mortgagor cost certifications, contractor cost certifications, and assistance with the HUD electronic filing process. Firm professionals are focused on avoiding problem issues such as mortgage reductions, regulatory agreement violations, and surplus cash requirements. Our working relationship with a number of HUD field offices enables us to effectively represent our clients.
The firm currently advises a number of non-profit corporations and Community Housing Development Organizations involved in the affordable housing industry. Non-profit organizations face increased scrutiny and increasingly complex federal regulations in connection with housing investments. Non-profit boards rely on us to stay compliant, avoid pitfalls and assist them in carrying out the organization’s tax-exempt mission. Our services for non-profit organizations include financial statement audits, regulatory compliance, assistance with ad valorem tax exemptions, transaction structuring and management advisory services.
Cost Certifications and Carryover Allocations
We perform services that are unique to LIHTC projects such as tax credit cost certifications and the 10% carryover allocation test. Our team understands the nuances involved in dealing with state housing tax credit agencies and our services are designed to deliver timely submissions while focusing on the key economic and tax issues facing these types of projects. We have extensive experience resolving delicate issues including the determination of eligible basis, partner at risk rules, developer fees and placement in service issues.
Tax Advisory and Compliance
Tax advisory and compliance for affordable housing projects are a major area of practice for our firm. Virtually all financial transactions have tax ramifications on the federal, state, and local levels. Our commitment is to be proactive in the tax planning process by providing our clients with alternatives to ensure transactions create the most favorable tax position for your organization while maintaining compliance with applicable tax law. Tax returns are prepared by seasoned, responsive and innovative professionals who are knowledgeable about the key tax issues facing affordable housing projects.
Historic and New Market Tax Credits
Our firm advises developers, investors and property owners who are involved in government subsidized programs to preserve and revitalize historic properties. Historic tax credit services include the preparation of development cost schedules, calculations of historic tax credit basis, transaction structuring to maximize tax credit and equity proceeds, and consultation to preserve the transaction integrity before the IRS.
We advise clients who are participating in a new program that channels private equity into community development initiatives in underserved markets. New market tax credit services include community development entity audits, financial, modeling transaction structuring and the evaluation of debt and equity products.
Transaction Structuring & Real Estate Advisory
Transaction structuring and real estate advisory services include due diligence, workout negotiations, development of debt and equity financing structures, debt and equity document reviews, syndication advisory and negotiations, financial feasibility analysis, development and operating financial projections, tax credit projections, and real estate portfolio analysis and valuations.