DOZ provides annual audit services to over 4,100 entities that own affordable housing communities financed in part with capital contributions received from the sale of Low Income Housing Tax Credits (LIHTC). Our firm has become well known and respected nationally for its expertise relative to the LIHTC program. Affordable housing is our primary area of focus, and we understand the nuances of these complex transactions. Our professionals regularly attend industry conferences and events, and stay up to date on best practices and the ever-changing regulatory environment in which our clients operate. We are particularly experienced with the unique accounting and auditing concepts associated with LIHTC engagements, including:
- Compliance with entity formation documents (guarantees, cash flow uses, entity fees, etc.)
- Loan or grant documents (use restrictions, cash flow restrictions, etc.)
- Initial lease-up
- Development capitalization
- Compliance with provisions of Section 42 of the Internal Revenue Code
- Many of the operating entities we audit are financed with tax-exempt private activity bonds and the 4% LIHTC, which may include the use of highly complex derivative instruments.