Welcome to Royo Management Inc.
Your Trusted Partner in Property Administration and Investment Services
Royo Management Inc. offers a comprehensive suite of services tailored to meet the unique needs of tax credit property owners. With expertise in asset management, compliance management, audit preparation, leasing and marketing, and tenant qualification and certification, we are your trusted partner in achieving your investment objectives with confidence.
Understanding Housing Credits:
Housing Credits are a critical component of affordable housing development in the United States, and understanding them is essential for anyone interested in housing policy, real estate, or community development.
What are Housing Credits?
Housing Credits, also known as Low-Income Housing Tax Credits (LIHTC), are a federal program designed to incentivize the development and preservation of affordable rental housing for low-income households in the United States. These credits are administered by the Internal Revenue Service (IRS) and allocated to state housing agencies, which then distribute them to affordable housing developers through a competitive application process.
Why are Housing Credits Important?
Housing Credits play a crucial role in addressing the shortage of affordable housing in the U.S. They provide developers with a significant source of equity that can be used to finance the construction, acquisition, or rehabilitation of affordable rental housing properties. By offering tax incentives to investors, the LIHTC program encourages private investment in affordable housing projects, thereby expanding the supply of safe and decent housing for low-income individuals and families.
Understanding LIHTC:
The Low-Income Housing Tax Credit (LIHTC) program was established by the Tax Reform Act of 1986 and is the primary federal program for creating affordable rental housing. Here's how it works:
- Allocation of Credits: Each year, the IRS allocates Housing Credits to state housing finance agencies based on population size. These agencies then distribute the credits to developers through a competitive process.
- Development of Affordable Housing: Developers who receive Housing Credits must adhere to strict guidelines regarding the affordability and quality of the housing units. Typically, a certain percentage of units in a LIHTC property must be set aside for households earning no more than a specified percentage of the area median income.
- Investment by Syndicators: Developers often partner with syndicators, which are entities that specialize in raising equity from investors to finance LIHTC projects. These syndicators sell the tax credits to investors, such as banks and corporations, who can use them to offset their federal tax liability.
- Compliance and Monitoring: LIHTC properties are subject to extensive compliance and monitoring requirements to ensure that they remain affordable for an extended period, usually 15 or 30 years. This includes regular inspections and income verification of tenants.
Benefits of LIHTC:
Increased Affordable Housing Stock: LIHTC has been instrumental in the creation and preservation of millions of affordable housing units across the country.
Economic Development: LIHTC projects stimulate economic activity by creating jobs in construction and related industries.
Community Stability: Affordable housing contributes to the stability and vitality of communities by providing stable housing options for low-income residents.
Housing Credits, particularly the LIHTC program, are a vital tool in the effort to address the affordable housing crisis in the United States. By leveraging private investment to create affordable rental housing, these programs help improve the lives of low-income individuals and families while strengthening communities nationwide.
Empower your team with our comprehensive training and webinar programs, designed to enhance skills and knowledge in property management and compliance.
Training and Webinars
Our Professional Property Administration and Investment Services:
At Royo Management Inc., we specialize in delivering high-quality property management services to property owners and investors, with a particular focus on tax credit properties. With a commitment to excellence, transparency, and efficiency, we are dedicated to helping our clients maximize their property investment returns while ensuring compliance with tax credit regulations.
Purchase and Sale of LIHTC Properties
(Standalone Service)
Providing expert assistance in purchasing and selling LIHTC properties, guiding clients through the process while maximizing returns and ensuring compliance.
LIHTC Property Management
(Bundle)
We recognize the critical importance of effective property management in ensuring the long-term success and viability of LIHTC (Low-Income Housing Tax Credit) properties.
Compliance Management
(standalone service)
We maintain strict adherence to all regulations and compliance standards to safeguard your investments.
Tenant Qualification and Certification (Standalone Service)
Ensure eligibility and compliance for tax credit programs through our efficient Tenant Qualification and Certification services, offering thorough screening and streamlined certification management.
Audit Preparation Support
(Standalone Service)
Prepare for audits with confidence with our thorough and meticulous audit preparation services.
Lease Up and Marketing
(Standalone Service)
Secure tenants efficiently and effectively with our Lease Up services, ensuring maximum occupancy and rental income for your properties.
Asset Management Expertise
(Standalone Service)
Our team of professionals ensures your assets are managed effectively to optimize ROI and mitigate risks.
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500+
Properties Managed
1.2k+
Investment Portfolio
300+
Satisfied Clients
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