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Affordable Housing and Community Development

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Overview

Our Clients

Katten's Affordable Housing and Community Development lawyers represent for-profit and nonprofit developers, tax credit and private equity syndicators and investors, management companies, public entities, underwriters, and lenders. Our attorneys advise a broad cross section of market participants throughout the United States, with an emphasis in California, Illinois, New York and Washington, DC.

Our Services

Katten handles legal matters related to the acquisition, development and financing of multifamily, health care, office, retail, industrial, public use and mixed-use real estate developments. Our national Affordable Housing and Community Development practice includes attorneys experienced in sophisticated and cutting-edge aspects of real estate, secured lending, public finance, corporate and business entity structuring, securities, pension funds, state and local housing agencies, capital markets, tax, and US Department of Housing and Urban Development (HUD) matters. Our team is well-versed in both conventional and nonconventional financing programs and skilled at leveraging this experience to develop creative, practical solutions that advance our clients' goals and address difficult challenges.

We handle the following subjects below.

Financings. Katten's Affordable Housing and Community Development practice assists clients with multifamily and single-family housing revenue bond financings and note offerings; loan-to-lender and collateralized letter of credit financings; variable rate tender bond programs; insured financings; tax increment financings (TIFs); and Ginnie Mae pass-through financings.

Tax Issues. We assist with debt and equity tax-related aspects of financings, helping structure mixed-finance and other transactions that maximize business objectives of our clients. This includes evaluating and securing available tax incentives—including low-income housing tax credits (LIHTC), new markets tax credits (NMTC), historic rehabilitation tax credits (HTC), energy tax credits, TIFs and others. Among our many innovative and unique achievements is the creation of a tax structure—now used in transactions across the United States—that resulted in the first practical syndication of an "80/20" mixed-use low-income project, the first "step-in-the-shoes" tax-exempt, bond-financed condo-to-affordable-housing transaction in the country and an advantageous bond financing structure for mixed-income projects that combines recycled bonds for market-rate units and volume-cap bonds for affordable units.

HUD, Fannie Mae, Freddie Mac and Ginnie Mae Programs. Katten lawyers assist clients in utilizing the full range of HUD, Fannie Mae, Freddie Mac and Ginnie Mae programs and complying with their requirements. We work frequently with both headquarters and field office staff on transactional matters as well as regulatory and compliance issues. We routinely handle issues related to: HUD loan guarantees; Fannie Mae/Freddie Mac/Ginnie Mae financing; HOPE VI and other mixed-finance programs; Federal Housing Administration (FHA) multifamily housing loans and risk sharing loans, including transfer of physical asset (TPA) guidance; Section 8 and other rental assistance programs, including the Rental Assistance Demonstration (RAD) program, project-based vouchers, mark-to-market, mark-up-to-market and other Section 8 renewal options; Section 8 tenant-based assistance, including Section 8 enhanced vouchers; Section 236 decoupling transactions; Section 202 prepayment guidance and Section 202 preservation transactions, including Section 202 loan subordination guidance; HOME Investment Partnerships Program (HOME) and Affordable Housing Program (AHP) funds; and Community Development Block Grants (CDBGs).

State and Local Finance Agencies. Our national practice handles issues involving state and local programs and agencies—in California, Illinois, New York, Washington, DC and elsewhere—frequently in conjunction with federal counterparts. For example, we often represent developers of affordable multifamily rental projects in transactions that involve several of the following: tax-exempt bond financing, LIHTC, Section 8 or other HUD rental subsidies, subordinate financing provided by a state or local government agency, and a real estate tax abatement. We help our clients in combining the various forms of assistance and financing in a manner that will maximize the continued long-term viability of the project.

Troubled Assets. We represent owners, lenders and investors in restructuring and/or recapitalizing troubled assets, including managing bankruptcy and insolvency issues. In addition to assisting owners of and lenders in troubled assets, we help clients in acquiring individual and pools of troubled assets.

Litigation. Our extensive experience litigating contract disputes, construction claims and zoning disputes—including those involving multifamily, affordable housing and community development projects—allows us to help owners, developers, general contractors, construction managers and trade contractors effectively manage challenges related to the development and construction of diverse properties.

Experience
For-Profit Developers
  • Developer counsel for public housing redevelopment projects under the RAD program involving LIHTC equity, tax-exempt bond financing, commercial mortgage debt, public housing funds and local funds.
  • Community development entity counsel on multiple NMTC transactions throughout the United States.
  • Developer counsel for many affordable housing transactions utilizing multiple tranches of debt and equity financing, including LIHTC equity, HOME and CDBG loans, AHP funds, TIF, HTCs and energy grants.
  • Developer counsel in the negotiation of, and financings under, a development agreement with the US General Services Administration for a mixed-use 42-acre parcel in Washington, DC.
  • Developer counsel in connection with more than 75 high-rise 80/20 and mixed-use projects in Manhattan and elsewhere in New York City, with individual projects in some cases exceeding $1 billion.
  • Developer counsel in closing a series of transactions to preserve existing Section 8-subsidized projects through new tax-exempt bond financing, LIHTC equity, subordinate municipal financing and restructuring of existing HUD-held debt.
  • Developer counsel in connection with a failed condominium transaction that was recapitalized using tax-exempt bonds and LIHTCs in a step-in-the-shoes transaction.
  • Developer counsel in connection with mixed-use projects financed with LIHTC equity, HUD capital grants and TIF.
  • Developer counsel for supportive living facilities utilizing LIHTCs.
  • Developer counsel for a mixed-finance transaction involving HOPE VI and other public housing funds, commercial first mortgage debt, TIF (bridged with a junior mortgage loan) and LIHTC equity.
  • Developer counsel in connection with the purchase and subsequent recapitalization of expired LIHTC projects.
  • Developer counsel in connection with HUD regulatory and compliance issues, including Section 8 contract renewals, approval of property transfers, allowable distributions and equity take-outs, fair housing and accessibility issues, and 2530 previous participation clearances.
  • Special tax counsel for a mixed-use transaction (residential and office uses) involving the syndication of both LIHTCs and HTCs.
  • Counsel to a major national developer/operator in connection with the acquisition and financing of pools of multifamily properties and individual projects (both market rate and affordable) totaling in excess of $15 billion throughout the United States.
Lenders
  • Counsel to sponsors in connection with the securitization of more than $3 billion of tax-exempt and taxable multifamily housing bonds through Freddie Mac's TEBS program and Fannie Mae credit enhancement programs.
  • Lender counsel in closing a restructuring and recapitalization of a $1.4 billion, 3,700-acre master-planned community in Orange County, California.
  • Lender counsel in a variety of permanent loan transactions across the United States involving LIHTCs and HTCs—including workouts, foreclosures and recapitalizations.
  • Lender counsel in connection with the refinancing of a portfolio of 30 affordable multifamily housing projects located in five states. The refinancing involved 30 separate municipal bond transactions totaling $171 million and included tax-exempt and taxable bonds and associated derivative products.
  • Lender counsel in assisting lenders obtain FHA, Fannie Mae, Freddie Mac and Ginnie Mae licenses and approvals and in providing ongoing advice on regulatory and compliance issues.
  • Counsel to Freddie Mac and several national banks providing credit enhancement for multifamily housing bond transactions.
  • Counsel to a national bank in connection with the formation of a fund and the subsequent "monetization" and sale of a portfolio of LIHTC investments.
Nonprofit Developers
  • Counsel to a nonprofit educational institution located in Chicago in connection with the development of athletic facilities using NMTC equity.
  • Counsel to nonprofit developers in numerous mixed-finance transactions.
  • Counsel to a nonprofit developer in connection with a LIHTC project built on a ground lease with five tranches of debt financing including conventional loans, AHP funds and TIF.
Public Agencies
  • Bond counsel in numerous placements of tax-exempt bonds involving a wide range of facilities and projects (multifamily housing, continuing care facilities, medical offices, airports and port facilities).
  • Trustee counsel in Chicago Housing Authority (CHA) bond issuances in which HUD receipts were pledged as security for the payment of the bonds.
  • Counsel to the CHA in connection with four large mixed-finance transactions in Chicago.
  • Counsel to a public housing authority in connection with a mixed-finance transaction involving public housing capital grants, HOME funds and TIF.
  • Counsel to cities in connection with inclusionary zoning ordinances and first-time homebuyer assistance programs.
Syndicators/Investors
  • Syndicator and investor counsel for multiple LIHTC fund transactions, including a guaranteed LIHTC fund transaction utilizing a proprietary GAAP-efficient structure designed by Katten.
  • Bond counsel in connection with the workout and recapitalization of a distressed LIHTC project.
  • Tax credit investor counsel and developer counsel in connection with investments in several 80/20 apartment projects in California, New York and Washington, DC.
  • Counsel to investors on the foreclosure of buildings financed with HTCs.
Events
November 14, 2017
Affordable Housing Reception | Chicago, Illinois
July 20–24, 2016
May 7, 2015
April 1–2, 2015
June 20, 2013
Affordable Housing and Community Development

Recognition

International Fund Awards – US Real Estate Law Firm of the Year

2013
U.S. News Best Lawyers "Best Law Firms" – Public Finance Law (National)
Public Finance Law (National), 2014–2015
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (New York)
Real Estate Law (New York), 2011–2019
Legal 500 UK – Real Estate – Property Finance
Real Estate – Property Finance, 2015–2019
Chambers USA – Real Estate: Mainly Corporate & Finance (New York)
Real Estate: Mainly Corporate & Finance (New York), 2017–2018
Chambers USA – Real Estate (North Carolina)
Real Estate (North Carolina), 2017–2018
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (National)
Real Estate Law (National), 2012–2019
Chambers USA – Real Estate (Washington, DC)
Real Estate (Washington, DC), 2017–2018
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (Washington, DC)
Real Estate Law (Washington, DC), 2011–2019
Chambers USA – Real Estate (Nationwide)
Real Estate (Nationwide), 2012–2018
Legal 500 US – Construction (including Construction Litigation)
Construction (including Construction Litigation), 2016

Real Estate Law Firm of the Year by Lawyers World

2013
Chambers USA – Real Estate: Finance (North Carolina)
Real Estate: Finance (North Carolina), 2012–2018
Legal 500 US – Real Estate - Team of the Year
Real Estate – Team of the Year, 2014
U.S. News Best Lawyers "Best Law Firms" – Law Firm of the Year in Litigation – Real Estate
Law Firm of the Year in Litigation – Real Estate, 2013
Legal 500 US – Real Estate
Real Estate and Construction – Real Estate, 2013–2018
U.S. News Best Lawyers "Best Law Firms" – Law Firm of the Year in Real Estate
Law Firm of the Year in Real Estate, 2014
U.S. News Best Lawyers "Best Law Firms" – Public Finance Law (Chicago)
Public Finance Law (Chicago), 2014–2015
Chambers USA – Real Estate (Illinois)
Real Estate (Illinois), 2006–2018
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (Chicago)
Real Estate Law (Chicago), 2011–2019
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (Charlotte)
Real Estate Law (Charlotte), 2011–2019
Chambers USA – Real Estate (Charlotte)
Real Estate (Charlotte), 2010, 2014
U.S. News Best Lawyers "Best Law Firms" – Real Estate Law (Los Angeles)
Real Estate Law (Los Angeles), 2011–2019
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Recognition

International Fund Awards – US Real Estate Law Firm of the Year

2013
Public Finance Law (National), 2014–2015
Real Estate Law (New York), 2011–2019
Real Estate – Property Finance, 2015–2019
Real Estate: Mainly Corporate & Finance (New York), 2017–2018
Real Estate (North Carolina), 2017–2018
Real Estate Law (National), 2012–2019
Real Estate (Washington, DC), 2017–2018
Real Estate Law (Washington, DC), 2011–2019
Real Estate (Nationwide), 2012–2018
Construction (including Construction Litigation), 2016

Real Estate Law Firm of the Year by Lawyers World

2013
Real Estate: Finance (North Carolina), 2012–2018
Real Estate – Team of the Year, 2014
Law Firm of the Year in Litigation – Real Estate, 2013
Real Estate and Construction – Real Estate, 2013–2018
Law Firm of the Year in Real Estate, 2014
Public Finance Law (Chicago), 2014–2015
Real Estate (Illinois), 2006–2018
Real Estate Law (Chicago), 2011–2019
Real Estate Law (Charlotte), 2011–2019
Real Estate (Charlotte), 2010, 2014
Real Estate Law (Los Angeles), 2011–2019
The Legal 500 US Awards 2014 Winner image

Real Estate Team of the Year

Screen Reader Content

The Legal 500 Real Estate Team of the Year - 2014

OUR CLIENTS SAY...

"They are smart and efficient and very service-oriented."

Chambers USA 2016
(Real Estate)

Screen Reader Content

Our Clients Say: "They are smart and efficient and very service-oriented."

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