Once the project is approved, you'd invest in it and, in return, receive tax credits that can be used to offset your income tax liability.Now, it's important to note that these tax credits are allocated to each state based on their population, and then distributed by state agencies through a competitive application process.

You just allocate the $275 expense in this case to either the other single-member LLC which owns a property or the holding LLC, is that correct?

The expense allocation starts on day 1.  

Continue to spend time determining appropriate asset allocation by considering your investment time horizon, risk tolerance, objectives, and cash flow needs. 

This is where I'm personally allocating most of my own capital currently for new construction investments!

But you can allocate those proceeds any way you want as you're looking for deal structure. 

Before making any decisions, here are some questions you should ask yourself:- Can you allocate a portion of your current income to make regular early payments?

How to allocate salary and equity?

Lastly, the developer would have a single point of responsibility for the building's design, including the designer's specification of products, fixtures, and assemblies; should anything go wrong, the developer has one entity to talk to first.This leads to my last point, and that is risk allocation.

I.e. a large PMC may have more experience/connections but not value each individual investor as much vs. a smaller PMC that has less clients but allocates more time to each client.