There are lots of totally different makes use of for surety bonds within the Inexpensive Housing business. In our surety follow, we work steadily with contractors and builders on LIHTC offers – from efficiency and cost bonds for the contractor to completion or “subdivision” bonds for the LIHTC developer.
LIHTC Recapture Bond
Lately, after noticing the rising want from shoppers and Inexpensive Housing leaders, we determined to develop a LIHTC Recapture Bond program. Disposing of or buying a LIHTC property previous to the tip of the 15-year compliance interval could be a important problem as many institutional tax credit score buyers are hesitant to permit a change in possession in the course of the tax credit score compliance interval. Previously, the IRS required a bond; whereas that requirement is not in place, many buyers are requiring a surety bond or one other type of collateral. Seeing this want out there, we now have partnered with a global surety firm to develop a proprietary surety product.
The LIHTC Recapture Bond gives assurance to tax credit score buyers or restricted companions that the property will stay in compliance with Part 42 of the IRS code and they are going to be protected in opposition to tax credit score recapture and/or curiosity penalties. The aim of this surety product is to supply flexibility for the disposition of a LIHTC property inside the 15-year compliance interval.
About Our Surety
We’ve partnered with QBE Surety to develop this unique LIHTC surety product. The surety is rated A “Wonderful” by AM Greatest and has a monetary measurement of “XV” ($2 Billion or Higher). It’s listed on the U.S. Division of Treasury’s checklist of licensed firms.
Underwriting and Pricing
The underwriting course of for this surety is rapid, easy and simple. This product is right for these with demonstrated, long-term expertise with LIHTC tasks. Our LIHTC Recapture Bond affords inexpensive, flat annual premium charges. Pricing relies upon the client’s LIHTC expertise, monetary stability and the dimensions of the bond.
Please contact me in case you are involved in studying extra about our modern, new product to serve the Inexpensive Housing business.
