New England Affordable Apartments is a Massachusetts Limited Liability Company formed to build affordable low income housing units through the use of federal and/or state tax credits.
As the Offering Documents explain, we raise approximately 10% of the funds used in the development and construction of our projects from investors like yourself. However, since "affordable housing" represents government public works, the developer raises the lion's share (roughly 90%) of the funds by selling tax credits.
Tax credits are made available by both the state and federal government to large companies such as Coca Cola, Google, Apple, etc. These companies must use the tax credits over the first 10 years and the depreciation credits over the first 15 years.
At the end of the 15 years all the tax credits are exhausted and these companies exit the project, leaving the ownership in the hands of those original 10% investors who now own 100% of the project 15 years later.
Interest will begin accruing immediately on release of the funds to the developer. Interest will begin to be paid at the rate of 10% per year no later than 2 years after the funds are released to the developer. All deferred interest will be paid with the initial interest payment.
If you have a 15-year timetable to invest, this is the perfect asset for your children’s nest egg, your grandchildren’s college fund, or a retirement benefit for yourself.
Note that this is a "secured" investment. See Offering Documents for details.
