New England Affordable Apartments, LLC and Tax Credits
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.
A $1 million dollar investment actually builds a $12 million project with the developer funding the construction of the project through the sale of "for cash" tax credits granted to it by the federal and or state government(s). The monies received from the sale of the "tax credits" never needs to be repaid. And, at the end of the 15 years, the shareholders will take ownership control of the project that cost $12,000,000 to construct.
Will it still be worth $12,000,000 in 15 years? If, for example we assume a 3% inflation-adjusted increase in value of the real estate over the 15 years, that value in year 15 would be $18,151,076.
If you are an “Accredited” Investor (as set forth in The Securities & Exchange Act of 1933 — Regulation D — Rule 501), download the Offering Memorandum, which gives the full and complete details of the offering.
*We have an expert on staff to answer any questions you may have about investing in our properties.
How to Contact Us
We appreciate your interest in Paramount Development Group and New England Affordable Apartments, LLC. If you have questions or are interested in investing with us, please contact Lance W. Shields at Shields Capital Partners by calling (239)300-9725 or emailing firstname.lastname@example.org. Visit Shields Capital Partners on the Web at www.shicap.com.