Impact Investing and Community Development

Overview

Manatt’s nationally recognized impact investing and community development team represents investors and borrowers in all aspects of tax incentive financing. Our multidisciplinary group of professionals provide clients with deep industry knowledge and leading-edge legal advice to help them navigate the nuances and challenges of transactions in order to maximize the value of tax benefits and subsidies and get their projects done.

Our team works with various stakeholders to assess the benefits and risks of impact investments and community development deals, monitor program compliance, and develop strategies to protect their investments. Of particular note is our success in assisting clients with complex—and often groundbreaking—financing structures.

Additionally, we help our clients determine whether affordable housing projects qualify for New Markets Tax Credits (NMTC) or Low-Income Housing Tax Credit (LIHTC) financing. We have a wealth of experience combining NMTCs and LIHTCs with other tax credits and financing sources such as:

Historic rehabilitation tax credits, energy tax credits and incentives
State and local tax credits, grants, and subsidized loans
Tax-exempt bond financing
American Recovery and Reinvestment Act funds
Tax Increment Financing
Community Development Block Grant funds
Federal government agency loan guarantees
Conventional financing

What we do

Formation and certification of community development entities (CDEs)
Execution of allocation agreements
Structuring, negotiating and closing financing transactions, including equity investments, leveraged financings and combined financings
Counseling on asset management issues and general organizational matters
Managing workouts, unwinding transactions and executing refinancings

Projects we support

Mixed-use developments
Affordable housing
Hospitals and medical office buildings
Transit-oriented developments
Historic rehabilitation, redevelopment and urban renewal
Community health centers

New Markets Tax Credits experience

Our decades-long involvement in the federal LIHTC area and our experience in community development policy initiatives in health care, transportation, economic development and social services led us to early involvement with NMTC projects as well as other forms of community development and tax credit-based financing. The national scope of our work brings us marketplace perspective and experience to supplement our practice.