Partner, not owner.
The usual developer partnership asks mission-driven owners to give up control in exchange for a balance sheet. Our model separates the two.
Traditional developer vs. LIHTC Express
Housing authorities and nonprofits have a range of options, from turnkey sale to full self-development. Most fall somewhere in the middle. Here is where we sit.
| Traditional Developer Partner | LIHTC Express Model | |
|---|---|---|
| Who controls the deal | Developer affiliate is managing GP; owner holds a minority or "special" interest | Your organization or its affiliate is the managing GP or managing member |
| Developer fee | Developer keeps most of the fee; owner negotiates a share | You earn the developer fee; we are paid a consulting and guarantee fee |
| Guarantees | Provided by the developer, which is why it insists on control | We provide or arrange guarantee support behind your entity |
| Decision making | Developer drives design, contractor, and financing choices | Your board sets direction; we execute and advise |
| Long-term ownership | Developer often holds the Year 15 position and back-end value | Right of first refusal, purchase option, and exit planned for you from day one |
| Capacity building | Staff watch from the sidelines | Your team learns the process and can lead the next deal |
The developer fee is mission capital.
On a tax credit deal the developer fee can be one of the largest sources of unrestricted money a nonprofit or housing authority will ever see. In many states it can run up to roughly 15 percent of total development cost. Kept in house, it funds staff, predevelopment on the next site, resident services, and reserves.
Control matters just as much. When your entity is the managing partner, your board decides who builds, who manages, how residents are relocated and returned, and what happens at the end of the compliance period.
What you bring to the table
- Site control or existing public housing and assisted properties
- Property tax exemptions and nonprofit set-aside eligibility
- QAP points for nonprofit or public sponsorship
- Relationships with residents, neighbors, and local officials
- Project-based subsidy and voucher resources
These are the reasons developers want to partner with you. We help you use that leverage for your organization.
Choose the level of involvement that fits your capacity
Sponsor-Led Development
Your organization is the sole developer and managing partner. We act as development consultant and provide guarantee and credit support so investors and lenders are satisfied.
Co-Development, You Lead
For organizations newer to tax credits. We serve as a minority co-developer that carries more of the execution and guarantee load while your entity keeps control and the majority of the fee.
Portfolio Programs
For housing authorities and municipalities with multiple sites. We help phase a repositioning plan across properties, building internal capacity and fee income with each closing.
Have a site, a portfolio, or a RAD conversion in mind?
Tell us what you own and what you want to build. We will tell you how it can be structured so your organization stays the developer.