Affordable housing finance
Resyndication
A second LIHTC execution on an existing credit asset — typically a 4% bond acquisition/rehab at Year 15 — resetting compliance and funding the rehab.
Definition
Resyndication is a new credit execution on an asset that already ran a LIHTC cycle: a new ownership entity (often sponsor-affiliated, after the original investor exits) acquires the project, pairs tax-exempt bonds with as-of-right 4% credits under IRC § 42, and funds rehabilitation — restarting the compliance and extended-use clocks with fresh equity. Acquisition basis earns credits subject to the statute's related-party and prior-placed-in-service ("10-year") rules plus minimum rehabilitation-expenditure thresholds. Qualifying historic buildings sometimes twin the § 47 rehabilitation credit and California's state historic credit under the OHP regulations.
Why it matters in an underwrite
Resyndication is the dominant real exit for aging credit assets: it pays for the 25-year-old systems, buys out legacy positions and recapitalizes the deal while honoring the covenant. The 2025 drop of the bond-financing test to 25% widened the lane materially — rehabs that could not support an oversized bond issue now claim full credits. The traps: related-party limits on the acquisition price, the rehab-minimum thresholds, and existing regulatory agreements whose deeper restrictions survive the new closing.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.