Looking to connect with LIHTC experts

[Roseann Koefoed]

I'm an experienced workforce housing owner and operator. I'm under LOI to acquire my first LIHTC property (107 units in semi-rural south Chicago suburb) and am moving fast and furious to get up to speed on all things LIHTC. I have 17 years of corporate RE and compliance experience, so the LIHTC reporting and annual financial audit does not scare me. Not understanding how and when I can raise rents and other operational restrictions is what scares me.

This property is in the Extended Use Period though mid-2026.  With a 3-year decontrol period, I could transition the property to full market rate by mid-2029. It has IHDA soft loans in place that I may assume at acquisition.

I'd love to talk to anyone with LIHTC experience in Illinois.  I need to find and engage both a lawyer and LIHTC financial consultant in the couple weeks.

Specific questions I need help with right now:

1.  If I assume the IHDA soft loans, am I subject to the additional "HOME" compliance requirements?

2. Can IHDA ever stop me from raising rents to the LIHTC or HUD maximums? Does Illinois have % increase limitations?

3.  Should I assume the in-place IHDA loan at acquisition or close with a conventional loan and try to get IHDA loans/grants/credits later if/when I decide to keep affordable?  I'm still trying to figure out the best strategy - keep affordable or transition to market rate.  It's amazing as a market rate deal but I also want to explore the affordable opportunity.  I just don't know enough to underwrite that option.

Appreciate any advice!!  This community has been so helpful in helping me grow my portfolio.