9% LIHTC with RAD.
I have an application for 9% LIHTC with RAD. Project sources and uses have the local housing authority selling the property and land to itself and consultant (both will be the members of the new managing member LLC). Is there a reason, other than for acquisition basis, that the property has to be sold in these situations? Could the housing authority do a long term lease to the new managing member LLC. I'm just seeing an artificial increase in project costs, a sellers note to itself that isn't repaid, and a large increase in developer/consultant fees. Any insight would be appreciated.