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icon-industry-white-real-estateREAL ESTATE

GOING BEYOND THE BASICS.


Real estate developers, contractors and land owners turn to the experts at SVA for a wide range of professional services. Our team of CPAs goes beyond the basics of accounting, tax, auditing and consulting to provide specialized services strategically developed to help real estate professionals during acquisition, development, buying, selling and maintaining property. Specializing in affordable housing, historic renovations, commercial, retail, industrial and office developments, we have the expertise you need.

Impact of the Tax Cuts and Jobs Act on the Real Estate Industry

SPECIALIZED INDUSTRY SERVICES


Accessing Debt and Capital

Accessing Debt
Working with lenders both locally and nationally, we assist real estate owners and developers in finding the appropriate financing sources for their unique projects. With a keen eye focused on the various financing options of HUD, state housing agencies, the CDFI Fund as well as additional sources, our SVA real estate experts have the necessary understanding of both terms and technical requirements for these options. In addition, SVA is well-versed at helping organizations apply for “soft debt” such as HOME and AHP funds.

Accessing Capital
Our real estate experts have specific expertise in working with various low-income housing tax credit and new markets tax credit investors and syndicators. Utilizing this experience, we assist owners and developers in negotiating terms in letters of intent, conducting comparisons of letters with other potential investors, and reviewing partnership or operating agreements.

Specific services we provide include:

  • Compare tax credit pricing, examining the timing of the equity installments and the requirements to obtain each installment
  • Review the guarantees required by investors
  • Assess the reserve requirements and when the reserves may be released
  • Inspect the cash flow waterfall provisions, accounting for tax implications of cash flow use generated by the property
  • Examine the definitions included in partnership/operating agreements to ensure compliance with item definitions

Buying and Selling Property

Our qualified real estate professionals will discuss the variety of options available to you including:

  • IRC § 1031 exchanges
  • Land lease
  • Sale – Leaseback transactions
  • Purchase/Sale
  • Master lease structures

Our professionals will also provide you guidance on what type of legal entity to establish that provides the most beneficial tax consequences and legal protections. Most entities provide similar levels of asset protection, however each provides a distinct set of tax implications. We’ll assist you in identifying and incorporating the appropriate business tax strategies.

Commercial and Industrial Real Estate Development

There are a myriad of examples of commercial/industrial real estate from office buildings and manufacturing facilities to hotels and apartment complexes. Having an expert on your team who understands the unique tax rules for a commercial property versus personal property is essential.

Our real estate professionals work closely with commercial real estate developers, land owners, and contractors to manage resources, structure transactions, facilitate tax strategies, and assure compliance with federal and state income tax regulations.

We specialize in commercial, retail, industrial and office developments including large acreage developments with Big Box and related commercial pad build-outs both regionally and nationally. Areas of commercial real estate expertise include:

  • Tax services - research, planning and preparation
  • Financial feasibility and modeling
  • Single-family home lot developments
  • New Markets Tax Credits (NMTC) and Historic Tax Credits (HTC)
  • Tax Incremental Financing (TIF) analysis
  • Section 1031 Tax-Free Exchanges
  • Section 1034 Condemnations
  • Tax structuring for easement payments
  • Federal stimulus and financing programs

Compliance Consultation

Understanding and interpreting complicated federal and state compliance and regulatory rules is not an easy task. For those organizations in heavily regulated industries, SVA will assist you in both understanding and meeting regulatory burdens.

Several of our professionals have received their Housing Credit Certified Professional (HCCP) designation, a nationally recognized certification in the low-income housing tax credit industry. They understand the tenant compliance issues involved with IRC Section 42 low-income housing tax credits, various HUD programs and HOME loan requirements.

We guide you through the technical aspects of low-income housing tax credit tenant compliance and will consult with you on your specific complex issues. We also perform procedures to test for tenant file compliance offering additional assurance that your low-income housing tax credits have been properly determined.

Cost Certifications

SVA has extensive experience in performing cost certifications for multiple programs.  A cost certification is an audit of project costs and also, when applicable, a determination of which costs are qualified costs for certain tax credits or grant programs.  Following are some of the programs or circumstances for which SVA performs cost certifications:

  • Low-Income Housing Tax Credit Projects
  • Certified Historic Tax Credit Projects
  • Mortgagor and contractor cost certifications for projects with HUD Insured Mortgages
  • Brownfield and other Economic Development Grants
  • For owners that have entered into cost-plus construction contracts
  • Lender or partner requests for cost certifications
  • Other business reasons

HUD, Rural Development and State Agency Financing

Project funding from federal and state governmental sources generally comes with strings attached – compliance obligations and specialized financial reporting in particular.  SVA professionals work closely with these governmental funders and are knowledgeable about the various federal and state housing programs available.  We can help you navigate the complex, and sometimes conflicting, array of regulatory requirements that accompany this special type of financing.

Real Estate Tax Consultation

Managing the day-to-day aspects of your property can be challenging enough. Let the experts who specialize in addressing standard real estate tax practices help you meet necessary filings and compliance needs.

In addition to completing annual tax returns for your real estate projects, our tax savings strategies include:

  • Provide guidance on the structuring of entities and ownership of assets for both existing and new projects
  • Offer advice on sales and use tax as well as payroll tax related issues
  • Perform cost segregation studies providing your property with the greatest depreciation benefit
  • Advise on the availability of tax credits including low-income housing, certified historic structure and new markets

Tax Credits

Low-Income Housing
Low-Income Housing Tax Credits (LIHTC) make affordable housing developments not only possible, but financially viable. Since the introduction of the Low-Income Housing Tax Credit (Section 42) in 1986, SVA has helped real estate developers, nonprofit organizations and community housing agencies obtain these credits. In fact, most of the federal low-income housing tax credits awarded in Wisconsin have been to SVA clients.

New Markets
Investors who make qualified equity investments in low-income communities can qualify for federal New Markets Tax Credits (NMTC). SVA professionals work directly with both developers and Community Development Entities (CDE), which invest in low-income communities, to structure their transactions using the NMTC program.

With a large base of developers, we are able to provide your CDE with potential real estate projects in order to complete your Qualified Low-income Community Investment (QLICI).

Historic Rehabilitation
Looking to give a historic building a second life? Historic rehabilitation preserves the architectural vision and cultural heritage of previous generations and provides distinctive spaces to live and work. Bring us your plans and we will help you structure financing and tax credits to make historic rehabilitation both feasible and profitable.

Our real estate professionals understand the technical requirements of the Certified Historic Structure (CHS) Credit program and monitor changes to the tax code, with particular attention to changes affecting:

  • 24-month and 60-month rehabilitation window
  • Substantial rehab requirements
  • Impact on low-income housing tax credits (LIHTC) eligible basis
  • Pass through election in master lease structure
  • State historic credits

Energy Tax Credits and Deductions
Certain properties that utilize solar or geothermal sources to generate electricity, heating/cooling or hot water may qualify for federal energy tax credits. SVA professionals can help you take advantage of these ever-changing subsidies to help finance your project.

Tax Incremental Financing (TIF) Structuring

Tax Incremental Financing (TIF) is a development tool used by municipalities to help finance varied property improvement projects from regional shopping centers to large single use facilities. Municipalities have found TIF critical in redeveloping blighted areas and attracting new economic development to their communities.

SVA can assess the potential of utilizing TIF as part of an overall financing structure.

Tax Return Preparation

Our SVA professionals have a comprehensive knowledge of and broad experience with complex tax, accounting, business and transactional issues. We can prepare your federal and state income tax returns no matter how complicated they may be.

Transaction Structuring

Our experienced real estate consultants can help you structure the transaction so your proposal becomes a winning proposal. Using an internally developed template for financial modeling and feasibility, we can forecast the results of different financing strategies. The template produces schedules showing financial projections for:

  1. Rates of return on investments
  2. Tax credits
  3. Profits and losses
  4. Cash flow
  5. Residual value
  6. Tax savings
  7. Balance sheet
 
Measurable Results.
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Measurable Results.

"We specialize in affordable housing and SVA is a leader in tax credit knowledge. Having SVA as a partner is integral to our success."

Kristi Morgan, Chief Operating Officer
Mirus Partners

Mirus Partners

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Measurable Results.

"We rely on SVA’s technical expertise and practical advice to help us navigate the complex issues involved in the real estate business."

Mike Morey, President

Oakbrook

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