Tax Credit Lending
What is LIHTC?
The Low-Income Housing Tax Credit (LIHTC) program was created in 1986 and made permanent in 1993. It’s an indirect federal subsidy used to finance the construction and rehabilitation of low-income affordable rental housing. Congress created this as an incentive for private developers and investors to provide more low-income housing. Without the incentive, affordable rental housing projects do not generate sufficient profit to warrant the investment.
RiverHills Bank is proud to be part of the legacy that is the LIHTC program. This program is widely recognized by both political parties as one of the most successful marriages of private industry and public spending. It also currently provides safe affordable housing to nearly 2.8 million households in the United States. This is important as having safe affordable housing is the #1 predictor of future success of children and their families. RiverHills Bank passionately believes in the benefits of providing safe affordable housing to every individual in the United States and we believe that our support of the LIHTC program helps us towards that goal.
RiverHills Bank and LIHTC Lending
- RiverHills Bank is a community bank based in Cincinnati, Ohio. Horizon Bank is a community bank based out of Waverly, Nebraska. The connection between the two banks is that we are both primarily owned by members of the Dunlap family. Together we have developed an excellent reputation in construction and permanent LIHTC lending that goes back to 1992. Over that time, we have been the lender on almost 500 LIHTC projects and currently we lend to 35-45 projects a year.
- RiverHills Bank typically originates construction and permanent LIHTC loans in the states of Ohio, Kentucky & Indiana. On these loans, Horizon Bank does the vast majority of the closing processing and due diligence. RiverHills has chosen Horizon to do this for us because LIHTC lending has been their focus for the last 20+ years and they have created a way to dramatically simplify what has become a very complicated closing process in the industry.
Why choose us for LIHTC Loans
Part of the reason we are able to consistently attract the very best developers in the country is because of this uniquely simplified closing process:
- The developer always gets to talk directly with the end decision-makers throughout the negotiation, due diligence and construction processes.
- Our staff works with our syndicator partners by sharing their Dropbox and joining their calls so that the developer only has to give out information once.
- We close the permanent loan at the same time as construction.
- Our loan documentation is simplified and straightforward.
- We cap our legal fees at $7,500 no matter how complicated the project is, proving to developers that our lawyers won’t waste their lawyers’ time.
When you put all of this together, along with the common sense approach of our decision makers, we bring great value to our developers and their continued use of us proves they believe it does also.
We are constantly looking to develop new relationships with developers that have a very strong reputation in the industry for constructing and managing a quality property that enriches the lives of the people who live there. RiverHills Bank is not CRA motivated and will follow a developer anywhere within our three-state region. Lastly, we are only interested in lending to 9% LIHTC projects (sorry no 4% bond deals).
If you are looking to learn more about LIHTC or if you have a project that you are looking to get a financing quote on, please don’t hesitate to call or email Brian Dunlap.
Contact: Brian Dunlap
Phone: (513) 201-2226