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In respect to the use of municipal debt security financing, Roberts Consulting, LLC represents only "obligors" of municipal debt (i.e. those issuing tax-exempt debt through "conduit issuers"), where the repayment of such indebtedness would typically be derived from the net revenue of the asset being financed. Roberts Consulting, LLC possesses no experience financing "municipal entity" (or similar) debt where the repayment is to be derived from the taxing power of such entity.

If you're an obligor entangled in the complexities of a "tax-advantaged" capital markets transaction...

we suggest you call us.

In respect to a 312-unit LIHTC Development in Detroit, Michigan, RCLLC advised the developer as to the opportunity, and then served as their financial advisor (FA) in the utilization of $12,500,000 in HUD 223(a)7 loan proceeds to advance refund (defease) a Series 2003, HUD mortgage enhanced tax-exempt bonds issue.

The "Great Recession" has created persisting economic anomalies. The capital markets continue to evidence that conventional taxable HUD mortgage loans can execute at lower interest cost than that of tax-exempt municipal bonds. Yet for a “4% LIHTC transaction," Section 42 of the Internal Revenue Code requires that not less than 50% of a development's qualified basis and land be financed with the proceeds of tax-exempt bonds. In a nearly $23,000,000 total development cost acquisition rehab deal, RCLLC aided our for-profit client in structuring an $11,120,000 short term tax-exempt bond transaction. The bonds were credit enhanced by the proceeds of a simultaneously executed taxable HUD (construction to perm) 221(d)4 loan. The bonds were used to finance the project until its placed in-service date and immediately retired thereafter. The plan of finance meets the "50% test" while maintaining the lower costing 40-year fully amortizing, taxable HUD permanent mortgage loan.

Sometimes not doing a deal is best. When the client asked RCLLC to get involved, they were considering if they should make further investment in a proposed historic property's adaptive reuse to a LEED certified silver, 9% LIHTC development. The intention was to also use energy and state tax credits, an equity bridge loan, and a permanent mortgage loan financing. Though technically complex, RCLLC was up to the task. However, after examining the facts and circumstances, RCLLC recommended that the client abandon the project.

Consulted Chapter 11, California for-profit developer on two cross collateralized, 250 units in total, multifamily housing "80/20" tax-exempt bond issue by identifying a "priming mortgage" gap loan to address immediate deferred maintenance needs.