Some projects inevitably become troubled assets and just cannot make ends meet. This may be because they have no rental assistance, or the local employer has shuttered the plant or moved away, or the population has shrunk to a point where there are not enough low-income tenants in the area, or the property has physical defects and they are not willing to provide funding to correct.
The usual result of these situations is that the general partner is asked to contribute capital to maintain operations. Eventually, when the general partner can no longer fund the project, the government starts to send deficiency notices or notices of intent to accelerate the loan.
Many people do not know that the government has an Offer-In-Compromise (OIC) program that may allow them to settle the note for a small fraction and take the project out of the program. However, this program can only be used by the current partnership.
Housing & Tax Consultants, LLC has worked with many people in filing the necessary documents and arriving at an acceptable price. We also help to get the government to conclude that the failure of the project is not due to management, but rather some outside influence such as lack of need for the units.