A bit more of a nuanced topic here, but has anyone seen or pulled of a JV equity investment structure on a deal with HTCs where the GP or LP equity is tax exempt? Any insight is appreciated!
Given our fund is made up of all tax exempt investors, the HTCs create "bad" income in typical structures which prevents us from investing as JV equity. I've gotten around it before structuring as mezzanine debt, but this still creates foreclosure limitations, as doing so would trigger a buy-back of the credit.
I imagine there are ways, similar to hotel investment PropCo-OpCo operating leases where you can try to reclassify the income to a certain extent... but I've yet to find anyone who has pulled it off.
Feel free to DM me.
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