Affordable Housing

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Communicate Your Firm’s ‘Vision’ Clearly and Frequently

In a recent documentary, Elon Musk spoke about his business in a way that truly demonstrates the importance of developing an inspiring corporate vision. He is not in the business of building cars or rockets. His vision is to colonize Mars and save the human species. Talk about an ambitious vision! The ability to effectively communicate…
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Income Averaging

Income Averaging: IRS Proposed Guidance

By CaLandra M. James, MAcc and Jeremy Densmore, CPA Now that the December 29, 2020 deadline for comments to the IRS is behind us, we thought this would be an excellent time to revisit the proposed LIHTC Average Income Regulation that was released on October 30, 2020. The Consolidation Appropriations Act of 2018 introduced an…
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Being Present as a Remote Leader

By Barry Tidwell CPA, CVA Part 2: Four Traits of ‘Present’ Remote Leaders Several years ago, I made the purposeful decision to work much of the week remotely to pursue a more aggressive M&A growth strategy. This decision to manage remotely was both strategic and necessary, given our firm’s growth into a multi-state, multi-office organization.…
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Leading in Times of Crisis

Leaders: Get Out of the Way to Lead Through Crisis

By Barry Tidwell Part 1: Effective leadership is often best demonstrated in times of crisis. Crisis situations have a remarkable way of either showcasing strengths or exposing weaknesses in leadership. The words and actions of leaders quickly align (or don’t) to transcend moments of volatility, uncertainty, complexity, and ambiguity (VUCA*)… potentially destabilizing dynamics that require…
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personal brand advocacy

The Importance of Developing a Personal Brand

By: Robert Boot Everyone approaches the concept of self-promotion differently. Some people consider self-promotion arrogance, while others view it as a necessary part of building an effective career. Fortunately, a compromise exists… a powerful strategy referred to as “Personal Branding.” (more…)
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RAD for PRAC overview

RAD for PRAC Offers Solutions for Aging Section 202 Properties By Andrew Gantzer, CPA, and Justin Heberling, CPA, HCCP A recent HUD evaluation of the federal Rental Assistance Demonstration (RAD) shows that the program is achieving its goal of preserving public housing and improving the conditions of distressed public housing. Since enacted through Congress in 2012,…
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Tidwell Group Believes It Takes A Village

Pablo Picasso once said, “The meaning of life is to find your gift. The purpose of life is to give it away.” This sentiment rings true for the employees of Tidwell Group. The Firm is vested in affordable housing beyond providing value-driven professional services to its clients through acts of community service. We believe it…
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Give Thanks by Giving Back

No one should go hungry. But in the United States, about 37 million people are hungry or “food insecure,” which means they do not know where their next meal is coming from. Every state has its fair share of hunger crises – with Alabama and Louisiana tied for the highest food hardship rates in the…
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How to Support Timely Delivery of First Year Credits

By Lee Dodson, CPA, and Jeremy Densmore, CPA, HCCP Timely delivery of first-year credits benefits developers, syndicators and investors in a Low Income Housing Tax Credit (LIHTC) development. The project itself also benefits because additional equity may be contributed, which means additional funds are available to get the project off to a good start. In…
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Cost Segregation Studies Offer Renewed Value Under New Tax Rules

By Ashley Northcutt and Chris Thomas New IRS rules on the 100% bonus deprecation deduction may expand the benefits of cost segregation studies. This month, the IRS issued two sets of regulations under IRS Section 168(k) – final and proposed – that clarify qualifying property. The final regulations explain the “increase of the benefit and…
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HUD financing in LIHTC deals and in Opportunity Zones

By Damien Cassell, CPA and Morgan E. Mahaffey, JD The U.S. Department of Housing and Urban Development (HUD) continues to make it easier for developers and owners to use loan programs for LIHTC and Opportunity Zone projects. With announcements this year that promise easier facilitation and closing of FHA loans as well as incentives to…
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General Contractors: Don’t Get Blindsided By Cost Certification Requirements

By: Kevin E. Allmandinger, CPA and Bart W. Parry, CPA With heightened accountability and state agencies increasing oversight in an effort to mitigate fraud risk, General Contractor Cost Certifications (GCCCs) for low-income housing projects are becoming increasingly important. General contractors must contend with inaccurate or incomplete accounting records, unpleasant and avoidable fire drills, and extra…
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State Tax Credits: Transferable or Non-Transferable

By: Joel T. McDowell, CPA, Quinn Gormley and Morgan E. Mahaffey, JD Many states have enacted tax incentives similar to the Federal General Business Credits[1]or the Low Income Housing Tax Credit. Specifics differ between states, but generally these “State Tax Credits” can be classified either as transferable or allocated tax credits. Transferable credits bifurcate the benefits of the…
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Income Averaging: Know the Elephant in The Room

By: Jeremy Densmore While a number of state agencies are starting to adopt Income Averaging (IA)[1] policies, there is still speculation on what the future IRS guidance will be. Recent industry articles have provided some speculative insight outlining common approaches for interpreting the IA amendment to the code. However, in the midst of all the…
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HUD Designates QCTs and DDAs for 2019

By: Quinn Gormley On October 22nd HUD announced via Federal Register Vol. 83 No. 204, designated Qualified Census Tracts (QCTs) and Difficult to Develop Areas (DDAs) for 2019.  The QCT and DDA is an important means for many of these areas in the production of affordable housing under the Housing Tax Credit Program (IRC §42), especially…
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Income Averaging: Handling a Double-edged Sword

Tidwell Group has issued a follow-up to this article and can be found by clicking this link. “Income averaging (IA)” is the new kid on the Low Income Housing Tax Credit (LIHTC) block. However, while the new IA rules appear simple, they simply are not. The Consolidation Appropriations Act of 2018 ushered IA into the…
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FLEXIBLE WORK ARRANGEMENTS: Another way to ensure client value

When it comes to job satisfaction, the importance of finding a healthy balance between the rigors of full-time employment and the increasingly hectic personal schedules of career professionals . . .  particularly those of professional women, cannot be overstated!  In fact, a recent study showed that when companies do what it takes to help facilitate…
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A New Opportunity to Defer Capital Gains Tax Is Here

BY QUINN GORMLEY AND TODD FENTRESS A new Opportunity Zone program to encourage investment in low-income community business was included in the 2017 Tax Cuts and Jobs Act. New rules in the code[1] allows taxpayers to defer capital gains on the sale of stock, business assets, or any property (whether or not the asset sold…
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Running on Empty: The Affordable Housing Crisis

Being homeless was never part of John’s life plan.  But in a world where 58,000 veterans are homeless and an additional 1.4 million veterans are at risk of homelessness, his experience with affordable housing is not unique. Tidwell Group wanted to better understand the situation that so many people like John find themselves in, so…
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Developers: Preserve Scattered Site Housing Successfully

There is a stark upward trend in the aging of affordable housing properties and it does not appear to be tapering anytime soon. In fact, aging housing inventory is on the rise and has continued to increase year-over-year with a peak expected in the year 2024. This trend provides opportunities for affordable housing developers. Tidwell…
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Keeping Tax Credits Afloat After Natural Disasters

Hurricanes Maria, Harvey, and Irma took lives and pummeled the economies of the affected areas. The impact of these natural disasters could extend to Low Income Housing Credit (LIHTC) projects if the proper measures are not taken within a specified time to ensure that projects meet development benchmarks or if affordable housing properties that are…
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How much can Section 45L save you?

You may be eligible for hundreds of thousands in tax credits. In addition to low-income and historic tax credits, many developers are finding out the Section 45L (energy efficiency) tax credits can save hundreds of thousands, even millions, on new residential and mixed-use projects. Case Study: A client recently completed an apartment complex renovation project…
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An Update on 45L following the PATH Act Release

Recent tax legislation extended the Energy Efficient Home Credit (45L). 45L is a $2,000 federal tax credit per free-standing home, per townhouse and per apartment where units and apartment buildings are three stories or less above ground. There is a $1,000 federal tax credit available per manufactured home. Properties must be substantially completed after August…
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