Louisiana LIHTC Guide For First-Time Developers
Launching your first Louisiana deal is exciting—and demanding. Local markets, LHC timelines, and Gulf South cost drivers all shape feasibility from Monroe and West Monroe to New Orleans, Baton Rouge, Shreveport, Lafayette, and Lake Charles.
Understand the Louisiana landscape
Insurance, utilities, and construction availability can swing pro formas quickly. In coastal parishes and hurricane-exposed corridors, plan for higher premiums and resiliency costs. In North Louisiana and the I-20 corridor, labor and logistics may be more favorable, but subcontractor availability still matters—build a schedule that reflects your market.
From idea to application: a practical sequence
- Site control & early diligence: Title, zoning, flood maps, environmental screens, and preliminary utility confirmations.
- Feasibility & rent mix: Align rents with income limits and utility allowances; check operating comps from similar LIHTC sites.
- Pick a credit path: Model both 9% and 4% + bonds; confirm soft-funding options early.
- Capital stack design: Secure letters of interest for debt, equity, and soft funds; sequence pay-ins and draw schedules.
- Scoring strategy: Build an application that fits LHC priorities—site amenities, design features, community impact, and readiness.
- Complete exhibits: Market study, architectural, environmental, sources/uses, and operating pro formas that tie to your narrative.
Pro forma details that win reviewers
- Insurance assumptions with broker support.
- Utilities and staffing tied to real quotes, not national averages.
- Realistic lease-up with marketing and compliance staffing.
- Adequate reserves and contingency for heat and storm seasons.
New construction vs. rehab in Louisiana
- New construction: Strong for infill in Baton Rouge Mid City or growth areas near Lafayette; secure contractors early and lock long-lead items.
- Rehab & adaptive reuse: Compelling in New Orleans’ older corridors; consider state historic credits and the extra documentation they require.
Community engagement and siting
Line up local support early—letters from neighborhood associations, service providers, and employers signal readiness. Proximity to schools, groceries, and transit strengthens both scoring and operations.
From award to closing: move with purpose
Finalize term sheets, lock budgets, and prepare for
LIHTC audits at year-end and placed-in-service. Set up cost tracking so cost certification moves quickly, and keep a simple covenant matrix for lender and soft-fund conditions.
Lease-up and compliance readiness
Train your team on LIHTC eligibility and documentation before certificates of occupancy. Create a shared compliance calendar with owner certifications, investor deliverables, and REAC or state reporting dates to avoid misses in the first year.
Want a Louisiana-specific roadmap that considers your site, timeline, and scoring? Little & Associates is a
Louisiana affordable housing CPA with deep regional experience—let’s build a plan that gets to closing.