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There are various completely different makes use of for surety bonds within the Inexpensive Housing trade. In our surety observe, we work incessantly with contractors and builders on LIHTC offers – from efficiency and fee bonds for the contractor to completion or “subdivision” bonds for the LIHTC developer.
LIHTC Recapture Bond
Not too long ago, after noticing the rising want from purchasers and Inexpensive Housing leaders, we determined to develop a LIHTC Recapture Bond program. Disposing of or buying a LIHTC property previous to the top of the 15-year compliance interval is usually a vital problem as many institutional tax credit score traders are hesitant to permit a change in possession throughout the tax credit score compliance interval. Up to now, the IRS required a bond; whereas that requirement is not in place, many traders are requiring a surety bond or one other type of collateral. Seeing this want out there, now we have partnered with a global surety firm to develop a proprietary surety product.
The LIHTC Recapture Bond gives assurance to tax credit score traders or restricted companions that the property will stay in compliance with Part 42 of the IRS code and they are going to be protected in opposition to tax credit score recapture and/or curiosity penalties. The aim of this surety product is to offer flexibility for the disposition of a LIHTC property throughout the 15-year compliance interval.
About Our Surety
We’ve got partnered with QBE Surety to develop this unique LIHTC surety product. The surety is rated A “Wonderful” by AM Greatest and has a monetary measurement of “XV” ($2 Billion or Better). It’s listed on the U.S. Division of Treasury’s listing of licensed firms.
Underwriting and Pricing
The underwriting course of for this surety is quick, easy and simple. This product is right for these with demonstrated, long-term expertise with LIHTC initiatives. Our LIHTC Recapture Bond presents inexpensive, flat annual premium charges. Pricing relies upon the client’s LIHTC expertise, monetary stability and the dimensions of the bond.
Please contact me if you’re excited about studying extra about our progressive, new product to serve the Inexpensive Housing trade.
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