As VHDA prepares for the 2017 tax credit cycle we are starting to get questions regarding recent disruptions and uncertainty in the tax credit equity market. Understanding there may be developments with 2016 tax credit allocations now facing an unexpected funding gap, we want to actively engage and hear from our partners around the issues affecting them and their developments. As we assess the potential needs and issues on a statewide basis it is vital that we hear from you individually regarding recent and/or upcoming 2017 deals.
Specifically, we request your input on methods of addressing existing (or potential) funding shortfalls related to the equity market. Also, if you are aware of syndicators or investors that have declined to move forward on outstanding letters of intent, have reduced credit prices, or have inserted adjusters for possible tax reform, we would like to know those specifics.
Finally, we want to know as soon as possible if your existing development is facing a potential funding gap and whether or not you anticipate applying for additional credits in the upcoming 2017 reservation process. While we intend to exhaust all reasonable options in addressing these issues, please understand that it may not be possible for VHDA to resolve all funding gaps and/or other issues.
Please don’t hesitate to contact me or any member of the LIHTC staff by phone or email with your specific comments or suggestions.
Respectfully,
JD Bondurant
JD Bondurant
Director of LIHTC Programs
Virginia Housing Development Authority
601 S. Belvidere St.
Richmond Va 23220
ph: 804.343.5725
email: jd.bondurant@vhda.com
