All Forum Posts by: Tom Ayd

Nick,  i am a LIHTC developer that focuses on new construction and acquisition of deals in rural areas.  USDA Rural Development, Sec 515 direct loan, with Sec 521 rental assistance and an allocation of LIHTC is the only way to serve this population.  I do not recommend a deal smaller than 24 and, more importantly, i do not recommend doing this type of deal for your first deal without teaming with an experienced developer.  What is most strange, if this is actually such a need, is that no other experienced LIHTC developers are pursuing the market area.  Lastly, you might look into wholesaling the right piece of entitled land to a LIHTC developer.  Visit the website for the housing finance agency and see who is ranked for allocations of LIHTC year after year.  Most rural developers focus on rural, so look for the ones that have rural projects.  Feel free to reach out to me if you want to chat more.

I have been developing LIHTC housing for 11 years now.  I am focused primarily in MD and DE.  I use the 4% and 9% programs for acquisition/rehab and for new construction.  My portfolio has over 500 units developed and we will close between 3 and 5 more projects, or up to 185 more units, this year

I would not encourage anyone to get involved in the program unless you want to make LIHTC development your primary business. It is not something you can really pull of as a side-gig, or maybe you can try but the lenders and investors are not going to take you seriously.  The industry is quite mature, the structures are very sophisticated and the financial exposure due to tax credit recapture is significant if you make a mistake during the construction or compliance period.

If you have a deal that you think would be good, i would recommend that you find a consultant or co-developer to joint venture with.  Or you might consider just selling or wholesaling the land or apartment complex to an experienced developer.  Look at the published allocations that have been made in the last 3 years and pick a developer that constantly makes the list.

Hello to all.  

I have been enjoying the BP content for well over a year now and i thought it was time to introduce myself. For over 10 year I have been a full-time apartment developer and "investor". My company focuses primarily on using the low-income housing tax credit (LIHTC) program to build new and acquire & rehabilitate aging affordable housing communities in the Mid-Atlantic. I am well versed in HUD, USDA and state agency financing and rental assistance programs.

Currently, i am a general partner of partnerships owning 177 units, but have been involved in the acquisition or development of over 500 units.  I expect to close financing on the acquisition and rehabilitation of over 250 unit in the next 12 months.  Almost all of our holdings are long term holds and involve syndication.  

If any BP members are interested in LIHTC, affordable housing, or multifamily in Maryland or Delaware, I can add value to the conversation.  

I look forward to participating on the forums and continuing to enjoy the BP content.