1. Lack of Debt Service Constraints: Most RAD transactions have fixed debt service constraints based on existing capital and operating fund income. LIHTC allows additional funding for repairs.
2. Development Fee: Many transactions allow for a development fee which can be used for a variety of uses.
3. Build Additional Units: LIHTC can fund the construction of additional units and buildings.
4. Grants: Many LIHTC transactions are eligible for additional funding and grants including Home funds as well as a variety of local and state grants.
5. Public Private Partnerships: LIHTC creates synergy by providing an incentive for corporations, banks, non-profits and developers to work together to improve neighborhoods.