Webcast: Understanding LIHTC Partnership Capital Accounts - Concepts and Tools for Tax Credit Project Stakeholders


October 22, 2019
2:00pm - 3:30pm


Vinnie Viola, Principal, Birch Island Real Estate Consulting, LLC

​About this Webcast

Partnership capital accounts might be one of the more esoteric and certainly confusing topics for tax credit partnership stakeholders. Failure to track capital accounts from year to year puts the investor’s tax benefits at risk of reallocation and more. What exactly does a negative capital account mean? When are losses no longer a good thing for the investor? What are some of the potential strategies to reduce the risk of tax credit reallocation? Similarly, why do partners care about partnership agreement terms such as minimum gain, deficit restoration obligation (DRO) and Schedule K-1? If any of these questions and terms sound familiar in your daily work responsibilities, then this training is for you. Join webcast host Vinnie Viola and Eide Bailly CPA Mandy Sutton for a 90-minute introductory training that’s sure to help demystify capital accounts and provide you with the tools to evaluate and mitigate risks with tax credit capital accounts.

Training Agenda

  1. ​Important Concepts
  2. Operating Pro Forma and 704(b) Capital Account Projection
  3. Capital Account Creation
  4. Capital Account Analysis and Maintenance During Compliance Period
    •   Information from Schedule K-1
    •   Actual Account Balance -vs- Underwriting
    •   How Capital Accounts Get in Trouble
      1.      Multifamily Real Estate Operations
      2.      Depreciation Elections
      3.      Interest Expenses
      4.      9% vs 4% (TEB) Project
  5. Risk Ratings
  6. Potential Strategies to Reduce Risk of Problem Tax Capital Accounts
  7. Year-15 Disposition and Partners’ Capital Account Issues
  8. Case Study
  9. Industry Updates

Is This Training for Me?

The capital account training is ideal for multifamily professionals that monitor projects on behalf of partners of tax credit partnerships;

  • Tax Credit Asset Managers and Analysts
  • Portfolio Managers
  • Multifamily Underwriting Staff
  • Chief Financial Officers
  • General Partners and Managing Members
  • Senior Property Management staff

Presenters Bios

Mandy Sutton, CPA - pending

Vinnie Viola, MPA, HCCP, is Principal and Founder of Birch Island Real Estate Consulting, LLC. His company provides asset management consulting services trainings to owners, developers, operators and investors of multifamily housing funded with LIHTC equity. With over 25 years’ experience, Vinnie has worked in for-profit, government and not-for-profit organizations that invest in, manage and regulate affordable housing. His career includes ten years in various leadership roles at Boston Financial Investment Management and Boston Capital, through which he gained expertise with asset management best practices. In these roles, Vinnie participated in hundreds of investment committee meetings for prospective tax credit investments. He proactively managed thousands of rental units in hundreds of investment partnerships, comprising over $1 billion in investor contributed equity. Vinnie received his Bachelor of Arts in Geography with concentration in urban planning from the University of Massachusetts Boston and Master of Public Affairs from the University of Texas Dallas. He is an active member of NH & RA's Asset Management Council, a unique peer network that convenes affordable housing executives from multifamily development firms as well as syndicators, tax credit investors and lenders, to develop operational best practices.

Webcast Content Technical Advisor

Julie Kafka, CPA - pending

Registration fee: 


Type of event: 

Partner Events

Learning area: 

Real Estate Development