Institutional Corporate Investors
The Partnerships invest in operating partnerships that own and operate affordable housing properties that qualify for Federal Housing Tax Credits. Certain properties may also qualify for the Historic Rehabilitation Tax Credit. The funds invest in operating partnerships owning apartment complexes throughout the United States. The operating partnerships are formed by local property developers to own and operate the apartment complexes. The operating general partner of each operating partnership will typically be the property developer who is responsible for the development, construction, supervision and the direct ongoing management of the property ' s operations, including preparing property-level financial and tax statements, reporting to the necessary state and federal agencies, budgeting, collecting rents, and cash management.
The partnerships will invest as a limited partner or member in the operating partnerships and will contribute the majority of the equity capital, with the remaining equity being contributed by the operating general partner. The investment partnerships will generally acquire a 99.99% interest in the profits, losses and tax credits of an operating partnership and a 10% - 50% interest in its available cash flow. In addition, the investment partnerships will acquire a 10% - 50% residual interest in the sale or refinancing proceeds of the assets of the operating partnership.