Affordable Housing Services

We recognize that accounting for the development of a new project is very complex and we want to help you from day one. We provide specialized services specific to the Affordable Housing Industry. These include:

Audits, Reviews, and Compilations

McKonly & Asbury has extensive experience in providing audit, review, and compilation services to a wide range of affordable housing entities. We have substantial expertise in performing audits in accordance with HUD, PHFA, and RD requirements and the specialized reporting requirements for each of these funding sources. Many of our clients are nonprofit developers and so we perform numerous single audits on an annual basis as well.

McKonly & Asbury has also developed a niche in auditing FHA Title II Nonsupervised Loan Correspondents. These specialized audits are required for mortgage companies in order to originate FHA insured single family mortgages and have been a growth area for our firm.

Cash Flow Analysis and Forecasting

The M&A Team will work with you to develop a cash flow analysis and financial forecast for your affordable housing development.  Financial forecasts require a unique set of skills that combine knowledge of the Affordable Housing Industry with tax law.  The M&A Team has the expertise to help you develop the optimal cash flow and financing structure for your affordable housing development.

LIHTC Application Preparation and Review

The M&A Team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for maximizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, maximize your equity proceeds.

Other Funding Source Application Preparation and Review

The M&A Team has experience in, and can assist you with, AHP, FHLB, and HOME applications. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for maximizing points for scoring so that your project receives the maximum funding available.

10% Tests

IRS and PHFA regulations require specialized knowledge when preparing a 10% Test. This test is critical in the tax credit process and it is important to work with someone who has the experience and expertise to ensure that your Test is accurate and your credits are not lost. The M&A Team has the audit and tax expertise and experience needed to complete an accurate 10% Test.

Development Cost Certifications

IRS and PHFA regulations require specialized knowledge when preparing a development cost certification. The M&A Team has the audit and tax expertise and experience needed to complete an accurate development cost certification. During this critical time in the tax credit process, it is important to work with someone who has the experience and expertise to ensure that you receive the maximum credits and mortgage proceeds possible. Our team also understands PHFA’s methods and will work with you to make the cost certification process as seamless as possible.

Agreed-Upon Procedures

Many syndicators require certification of various benchmarks before releasing equity contributions. The M&A Team has the experience and capacity needed to prepare the required certifications in an effective and efficient manner to ensure that you receive your equity contributions as quickly as possible after you have achieved the limited partner’s required benchmark.

Due Diligence

In order to successfully close a real estate deal, the financial structure must be understood. The M&A Team has the experience and industry expertise needed to perform the due diligence required to assess the financial structure of real estate deals. Our team can assist you in obtaining the most favorable price and alert you to potential problems.

Affordable Housing Training Seminars

In addition to our wide range of services, the M&A Team also holds an annual seminar series on various affordable housing topics with speakers that range from investors, lenders, PHFA and DCED staff, and attorneys, as well as members from our own Team. Members of our Team are also available to present seminars at your workplace or to provide development accounting training in a one-on-one setting.

Annual Tax Return Preparation

We are presently involved in preparing annual IRS forms 1065 and forms PA-65 for over 120 affordable housing partnerships or affordable housing nonprofit corporations. Our Affordable Housing Tax Team has the expertise to deal with issues such as technical terminations, transfers of interest, section 754 step-ups, as well as all of the various elections needed for first year partnership tax preparation. Our Team will review and evaluate activities to mitigate the risk of tax credit recapture or reallocations. Our Team is available for support for any IRS issues that may arise as well as to consult on various technical issues.

For more information, contact us at affordablehousing@macpas.com.