Attorney David Davenport was quoted in a LeadingAge article, “Threats to Nonprofits in Housing Tax Credit Program,” about a growing trouble point for nonprofit housing entities: “aggregators.” The article, published September 29, 2019, dives into a report recently issued by the Washington State Housing Finance Commission (WSHFC) that sheds light on the aggregator problem.

“An aggregator – unlike a typical syndicator or investor that developers have worked with for years – is someone new to the general partner, who was not part of the initial transaction that led to the LIHTC partnership or affordable housing development, and who may view the partnership and its development as a financial instrument rather than an affordable housing real estate investment,” Mr. Davenport says. An aggregator, he says, “casts reason, fairness, good faith, intent, and legal principles aside in hopes of extracting more financial return from the development than the tax benefits purchased.”

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