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6MultiUnitAcquisition-RehabilitationAffordableRentalHousingTHISGUIDESHOULDBEUSEDFORTHEFOLLOwINGTyPESOFPROjECTS1.x1dx1dForx1dthex1dacquisitionx1dofx1dexistingx1dmulti-familyx1dprojectsx1dwithx1dminorx1dtox1dmoderatex1drehabilitationx1d4x1dLowx1dIncomex1dHousingx1dTaxx1dCreditsx1dLIHTCx1dwithx1dtaxx1dexemptx1dbondx1d-nancingx1disx1dax1dveryx1dimportantx1d-nancingx1dtechniquex1dforx1dyourx1dprojects.x1dx1dUnlikex1d9x1dtaxx1dcreditsx1d4x1dcreditsx1darex1dautomaticallyx1davailablex1dtox1dprojectsx1dthatx1dusex1dtaxx1dexemptx1dbonds.x1dx1dx1d9x1dcreditsx1darex1dveryx1dcompetitivex1dwhilex1d4x1dcreditsx1darex1dnot.x1dx1dThex1dcreditsx1darex1dsoldx1dtox1dinvestorsx1dandx1darex1dax1dmajorx1dsourcex1dofx1dprojectx1dequity.x1dx1dThisx1dequityx1dallowsx1dyourx1dprojectx1dtox1dbex1daffordablex1dseex1dx1cFinancingx1dNotesx1dx1dforx1ddetailedx1dinformationx1donx1dthex1dLIHTCs.x1dx1d4x1dcreditsx1darex1daboutx1dx1dthex1dvaluex1dofx1dthex1d9x1dcreditsx1dsox1ditx1dwillx1dgeneratex1daboutx1dx1dofx1dthex1damountx1dofx1dequity.x1dx1dBondx1d-nancingx1disx1dveryx1dsimilarx1dtox1dax1dconventionalx1dloan.x1dx1dItx1disx1ddebtx1dthatx1disx1drepaidx1dthroughx1dcashx1d1owx1dfromx1dthex1dproject.x1dx1dThex1dbondsx1darex1dissuedx1dbyx1dvariousx1dcityx1dcountyx1dstatex1dorx1djoint-powersx1dauthoritiesx1dtox1dprojects.x1dx1dThex1dbondsx1darex1dpurchasedx1dbyx1d-nancialx1dinstitutionsx1dbanksx1dandx1dinsurancex1dcompaniesx1dandx1drepaidx1dthroughx1dthex1dprojectsx1dcashx1d1ow.x1dx1dFinancingx1dtermsx1dhavex1dlowerx1dinterestx1dratesx1dduex1dtox1dthex1dtaxx1dexemptx1dstatusx1dofx1dthex1dbonds.x1dx1dx1dWithx1dthex1d4x1dcreditsx1dtherex1dwillx1dbex1dlessx1dequityx1dinx1dthex1dprojectx1dsox1dthex1dprogramx1dallowsx1dforx1dhigherx1drentsx1dthanx1dthex1d9x1dLIHTCx1dprogramx1dupx1dtox1d80x1dareax1dmedianx1dincomex1dAMI.x1dx1dThesex1dcombinedx1dresourcesx1dcreatex1daffordability.x1dx1dCAUTIONx1dInx1dmanyx1dmarketsx1d80x1disx1dequalx1dtox1dthex1dlocalx1dmarketx1drentsx1dandx1dinx1dsomex1dcasesx1ditx1dmayx1dbex1dhigherx1dthanx1dmarketx1drents.x1dx1dx1dx1d4x1dLIHTCsx1dandx1dTaxx1dExemptx1dBondsx1darex1dusuallyx1dusedx1dforx1dacquisitionx1dandx1dminorx1dtox1dmoderatex1drehabilitationx1dofx1dmulti-familyx1dproperties.x1dx1dMorex1dexpensivex1dnewx1dconstructionx1dandx1dprojectsx1dthatx1dneedx1dsubstantialx1drehabilitationx1dre-usex1dofx1dax1dcommercialx1dbuildingx1dintox1dresidentialx1dunitsx1dorx1drecon-guringx1donex1dbedroomx1dunitsx1dintox1dmulti-bedx1dfamilyx1dunitsx1dwillx1dneedx1dthex1dgreaterx1damountx1dofx1dequityx1dgeneratedx1dbyx1d9x1dcredits.2.x1dx1dThex1d4x1dcreditx1dwithx1dbondx1d-nancingx1dwillx1dusuallyx1dtargetx1dindividualsx1dandx1dfamiliesx1dwithx1dhigherx1dincomes.x1dx1d4x1dcreditsx1dallowx1dforx1dhigherx1dAreax1dMedianx1dIncomex1dAMIx1dtargeting.x1dx1dThex1damountx1dofx1dequityx1dbyx1dthex1dsmallerx1d4x1dcreditsx1disx1dlessx1dcreatingx1dthex1dneedx1dforx1dmorex1ddebtx1dhigherx1drentsx1dneededx1dtox1dgeneratex1dthex1dcashx1d1owx1dforx1dax1dlargerx1dloan.3.x1dx1dThex1d4x1dcreditx1dwithx1dbondx1d-nancingx1dcanx1dbex1dusedx1dforx1dnewx1dconstructionx1dbutx1dtherex1dwillx1dbex1dgreaterx1dneedx1dforx1dotherx1dequityx1dlocalx1dgovernmentx1dsupportx1difx1dyoux1dwantx1dtox1dkeepx1drentsx1dlow.x1dx1dIfx1dyoux1darex1dlookingx1dtox1ddevelopx1dax1dnewx1dconstructionx1dprojectx1dreferx1dtox1dthex1dpreviousx1dguidex1dMultix1dUnitx1dAffordablex1dRentalx1dHousingx1dDevelopmentx1d9x1dLIHTCsx1dandx1ddisregardx1dthex1dinformationx1donx1d9x1dcredits.4.x1dx1dInx1dthex1dtypicalx1d4x1dTaxx1dCreditx1dstructurex1dthex1d-nancingx1disx1dusuallyx1dcomprisedx1dofx1dthex1dfollowingx1dsourcesx1da.x1dx1dEquityx1dcreatedx1dbyx1dsalesx1dofx1dthex1dtaxx1dcreditsx1dtox1danx1dinvestorx1d30-50x1dofx1dthex1ddevelopmentx1dcostsx1db.x1dx1dOtherx1dEquityx1dfromx1dlocalx1dstatex1dfederalx1dorx1dotherx1dsourcesx1d25-35x1dofx1dthex1ddevelopmentx1dcostsx1dc.x1dx1dBondx1dDebtx1dx1dUsuallyx1dinx1dthex1dformx1dofx1dax1dlowerx1dinterestx1dratex1dloanx1dforx1d25-35x1dofx1dthex1ddevelopmentx1dcostsx1dx1dSimilarx1dtox1d9x1dLIHTCsx1d4x1dLIHTCx1dprojectsx1drequirex1dfundingx1dfromx1dmanyx1dsources.x1dx1dDevelopersx1dusex1dthex1dtermx1dx1clayeringx1dx1dtox1dde-nex1dthex1dmultiplex1dsourcesx1dneededx1dtox1d-nancex1dax1dproject.MULTIUNITACQUISITION-REHABILITATIONAFFORDABLERENTALHOUSING4TaxCreditsandTaxExemptBondFinancingx14AcquisitionRehabilitation