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Click here to view a pdf of this product.
This information is intended to give you our typical financing deal parameters. If your transaction does not meet these parameters please call us to discuss how we can meet your needs.
The information furnished to you here is preliminary. This is not an offer or a commitment. Rates, terms and conditions may be changed without notice.
All transactions are subject to submission of a formal application, underwriting and written approval. Approved terms may vary.
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Section 42 Tax Credit Equity
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Sponsor
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Developers and fund managers with proven track record
in LIHTC program
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Property Types
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New construction or substantial rehabilitation of garden
apartments, town homes, and low-rise elevator buildings
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Proposal Timing
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GE proposals available prior to application submissions,
subject to receipt of information listed below
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Investment Size
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- $5 million - $20 million in equity single property
- $30 million - $100 million in multiple asset portfolios
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Tax Credits
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GE will invest in both 4% and 9% tax credit transactions
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Required Guarantees
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- Construction completion/lease-up lien free completion
and operating deficits guaranteed through permanent
loan funding
- Operating deficit - determined subject to market
and development
- Tax credit recapture
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Underwriting
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- Rents must be a minimum of 10% below market
comparables
- Expenses and vacancy must be consistent with market
or historical data for an equivalent project.
- Replacement reserves not less than $200/unit/year
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Management Company
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Demonstrated experience in the operation and management of tax credit properties with established compliance procedures
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