Financial Analysis

Tax Syndication

DRA maintains an expert and comprehensive practice in the syndication of federal and state tax benefits across a wide-range of programs. These include the Low Income Housing Tax Credit (LIHTC) program, the Investment Tax Credit for renewable energy, the Modified Accelerated Cost Recovery System (MACRS) for accelerated depreciation of qualifying renewable energy investments, the Historic Rehabilitation Tax Credit, the New Markets Tax Credits program, the Rehabilitation Tax Credit and others. DRA Principals have advised on the investment and structure of more than $3 billion in tax equity investment.

DRA’s practice includes competitive bids for solicitation of equity investments in a wide-range of tax advantaged developments, negotiation of partnership agreements, resyndications and refinancings, and preparation of winning competitive applications for allocations of scarce tax subsidy program financing.

Merritt Community Capital, Oakland, CA

DRA served as financial and development advisor to the City of Oakland in the creation of Merritt Community Capital. Sponsored initially by the City of Oakland, Merritt Community Capital went on to raise more than $400 million in Low Income Housing Tax Credit (LIHTC) equity for deployment among thousands of housing units throughout the San Francisco Bay Area, and more recently throughout California. DRA recruited initial corporate investors, many of whom had never invested in tax credits before. These corporations, including but not limited to Pacific Gas & Electric, Union Bank, Fannie Mae (who placed its first LIHTC investments in California through Merritt Community Capital), Freddie Mac (also first-time in California through Merritt) and a number of other corporations, went on to employ large portfolios of their own.

Chicago Housing Authority

DRA advised the Chicago Housing Authority (CHA) on its Plan for Transformation, as it applied to a number of former public housing projects, repositioning them under the LIHTC program, with mixed finance, project based vouchers, and a host of other financing sources.

California Qualified Allocation Plan

DRA advised the California Qualified Allocation Plan (QAP) on standards to provide priority set-aside pools for the revitalization of outdated public housing.

Australian Housing and Urban Research Institute

DRA provided both a keynote address and white paper to Australian government ministries for the adaptation of the U.S. LIHTC program to the Australia housing and tax policy context.

Rosewood Terrace, Oregon City, OR

DRA provided comprehensive development and financial assistance to the Housing Authority of Clackamas County for the development and financing of 212 units of very low income family housing on a transit oriented development (TOD) site outside Portland, Oregon. The project's financial structure was complex and challenging, facing threats from the 2017 Tax Reform Act, and an innovating financial structure, employing FHA mortgage insurance, bank financing, Low Income Housing Tax Credits, tax abatements from the County, as well as small gap financing and project based vouchers from the Housing Authority. Total project sources totaled $60 million.

Riverside Housing Development Corporation

DRA has served as financial and development advisor to the Riverside Housing Development Corporation (RHDC) for multiple developments, including the Mobley Lane project. Mobley Lane is a scattered site acquisition/rehabilitation development consisting of 11 fourplex buildings on a cul-de-sac in Hemet, California. DRA assisted RHDC in securing unit size waivers for the project, which involved reconfiguring some of the three-bedroom units to make larger two-bedroom units that better meet TCAC's minimum unit size requirements. DRA prepared the financing plan for the project, which includes Neighborhood Stabilization funds and RDA Housing Set-Aside funds. DRA also secured construction loan and tax credit equity commitments and assisted RHDC in preparing the 9 Percent tax credit application. Mobley Lane was the highest scoring project in the Inland Empire region for that round and received a 9 Percent allocation for the Project.