Cohen-Esrey Asset Management, LLC (CEAM) provides asset management services to state housing finance agencies for Section 42 Low Income Housing Tax Credit properties.
Enabling federal legislation was passed as a part of the American Recovery and Reinvestment Act of 2009 and states the following:
COMPLIANCE AND ASSET MANAGEMENT. The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any sub-award under this section. The State housing credit agency may collect reasonable fees from a sub-award recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph.
The Congress intended for state housing finance agencies to put into place a formal program of asset management and allows for a portion of the federal dollars that are granted as sub-awards to be retained for the purpose of funding such an asset management program.
CEAM is offering pilot projects in partnership with state housing finance agencies that will lead to the development of a permanent asset management program.
These pilot projects will encompass a cross-section of the states' Section 42 properties occupied by families and senior citizens including: (1) small, medium and large properties; (2) new construction, and (3) acquisition/rehab apartments.
Click here to review the services provided by CEAM’s asset management pilot.