Low Income Housing Tax Credit Program
The Low Income Housing Tax Credit (LIHTC) program was created in 1986 and is the largest source of new affordable housing in the United States. LIHTC is an indirect federal subsidy used to finance new construction and the renovation of low-income affordable rental housing. The federal government created this as an incentive for private developers and investors to provide more lower-than-market rents by offering tax incentives to the property owners; it is administered by the Internal Revenue Service (IRS). The program provides tax incentives, written into the IRS Code, to encourage developers and investors to provide quality affordable housing to low-income residents, and still have an opportunity to earn a profit.
Once an applicant secures a tax credit reservation, the developer must leverage the financial resources for the development. Under a typical LIHTC transaction, a developer must secure a conventional loan from a private mortgage lender or public agency, gap financing from a public or private source and equity from the developer or private investor in exchange for the tax credits. Once the financial piece is completed, the focus then turns to the next step of building or renovating the portfolio for the future residents. This is the critical juncture where FTK steps in to carry the project forward.
FTK Construction Services is proud to provide contracting services for this important housing segment. Through our demonstrated performance, we continue to provide expertise and high-quality results for our LIHTC Clients. FTK’s solid financial standing has earned a bonding capacity in excess of $100,000,000. Cutting-edge technology gives our Team and Clients real-time information from the jobsite. Our tenured and expansive staff of construction professionals ensures we have the necessary resources to complete these projects on budget and on schedule. We take satisfaction in knowing that our work benefits not only the developer and investor, but also those now able to move into a new, safe home.
That’s what we mean when we say that FTK Construction Services is “Creating Value Beyond Buildings.”
What Our Clients Say…
“Under the leadership of Jim and Mark, FTK has been a consistent contributor as a vendor partner of our real estate investment entities and our property management firm. Jim and Mark possess and exhibit the key character and leadership traits that assist them in carrying out the mission of FTK and in assisting us in maintaining operational profitability. I have watched them use good judgement in their business interactions and have also worked closely with them in settings where they have shown a strong capacity for both creative and analytical thinking.” – Douglas Hastings, Haley Real Estate Group, LLC
“As you know, the tax credit industry is tied to each individual state agency, and with that, there are so many design standards, product requirements and performance criteria thresholds that must be met, changing from state to state. Through your team’s proactive approach in compiling and monitoring the products we use on a regular basis, we’ve been able to expedite our review for compliance and compatibility with the different Qualified Allocation Plans of projects in our pipeline. We have never had a General Contractor work with us to not only follow a standard, but to ensure that we are ahead of stringent requirements when taking our standards to future projects, state to state. This kind of foresight not only saves my team time, but it saves the Developer exponential dollars throughout their construction period.” – Adam Pickett, Benton Design Group
“We have had the opportunity to work with FTK Construction Services since 2009. Since that time they have done over 10 large renovation projects for us ranging from exterior woodwork and paint, roof replacement, hail and fire damage renovation projects that were wide ranging in scope. These jobs totaled approximately $8M in cost. FTK always performed these jobs with professionalism to us, as their client, and with their contractors that they used our locations. We have never received a complaint of slow payment or any issue with their subcontractors during our years of business together.” – Greg Wright, Capital Assets, Inc.
“I wanted to commend your team on your approach to a project. Most contractors do not have the appreciation for creating a pleasant experience for the tenants on our jobsites. Given that the projects in Dallas are tenant-occupied, which is immediately a more-difficult project than new construction or a vacated property, you guys have shown a mastery in managing the tenant experience.” – Adam Pickett, Benton Design Group