Our firm is a recognized leader in providing audit, tax, and consulting services to owners, developers, and property management organizations. We provide a wide range of affordable housing services including:
Financial Statement 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, so we perform numerous single audits on an annual basis as well.
Tax Return Preparation
We have extensive experience in preparing IRS forms 1065 and forms PA-65 for affordable housing partnerships. We understand the IRS Form 8609 and can assist in calculating first year credits. Our Affordable Housing Tax Team has the expertise to deal with issues such as transfers of interest, section 754 step-ups, as well as all of the various elections needed for first year partnership tax preparation. Our team is available for support for any IRS issues that may arise, as well as to consult on various technical issues.
IRS and PHFA regulations require specialized knowledge when performing 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. McKonly & Asbury has the audit and tax expertise and experience needed to complete an accurate 10% Test.
IRS regulations require specialized knowledge when performing the 50% Test required for tax-exempt bond financing. McKonly & Asbury has the experience and expertise to ensure that the aggregate basis financed with tax exempt-bonds is calculated correctly for the 50% Test.
Development Cost Certifications
IRS and PHFA regulations require specialized knowledge when preparing a 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 possible. Our team also understands PHFA’s methods and will work with you to make the development cost certification process as seamless as possible.
McKonly & Asbury 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. McKonly & Asbury has the expertise to help you develop the optimal cash flow and financing structure for your affordable housing development.
LIHTC Application Consulting
McKonly & Asbury 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.
Many syndicators require certification of meeting various benchmarks before releasing equity contributions. McKonly & Asbury 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.