Resonant Proforma v2.5 | Investor IRR

After-Tax LP IRR10.77%vs target 6.00%

✓ MEETS TARGET · +477 bps

Pre-Tax IRR

7.53%

After-Tax IRR

10.77%

Yield on Contribution

1.75x

Tax Benefit to LP

4,773,230

Residual to Investor

6,807,253

Total Equity

20,645,000

Market Context — CA Credit Pricing Q4 2025 / Q1 2026

This Deal — Fed TC Price

$0.85

This Deal — State TC Price

$0.80

CA 9% CRA Mainstream

$0.84 – $0.90

AHF syndicator survey, Jan 2026

CA 9% Economic (non-CRA)

$0.78 – $0.84

secondary markets w/o CRA bid

Engine Conventions · investor yield assumptions in use

Investor Entity

(default) · Fed 21% · CA 8.84%

Exit Cap Rate

(default) · applied to Y16 NOI

LP Share

(default) · credits / tax / residual

LP Operating CF Share

(default) · CF stays w/ GP pre-DDF

Bonus Depreciation

(default) · tcYear 2026: 20% factor

Basis Allocation

27.5-yr Bldg · 15-yr LI · 5-yr PP

Study avg (69/13/18)

Engine defaults:Y1 Ramp—Mid-month (IRC § 42(f)(2))·Day Count—Actual/365Hover any field for details · custom values shown in accent blue

TC Price Sensitivity · after-tax LP IRR at alternate pricing

Credit Price	Fed TC Equity	Pre-Tax IRR	After-Tax IRR	Δ vs Target	Market Zone
$0.75	13,829,000	9.99%	13.61%	+761 bps	tertiary / soft LOI
$0.78	14,416,000	9.08%	12.56%	+656 bps	CA economic (non-CRA)
$0.80	14,808,000	8.52%	11.91%	+591 bps	CA economic (non-CRA)
$0.84	15,562,000	7.47%	10.70%	+470 bps	CA CRA mainstream
$0.88	16,290,000	6.51%	9.61%	+361 bps	CA CRA mainstream
$0.92	17,016,000	5.63%	8.61%	+261 bps	top-of-market CRA

Each row is a full convergence + investor yield re-run at that credit price — the numbers reflect real engine output, not a linear approximation. Δ vs Target measured against the 6.00% after-tax LP IRR threshold.

MACRS Depreciation (15-yr)

Year	Residential (27.5-yr)	Land Improvements (15-yr)	Personal Property (5-yr)	Bonus Y1	Total Depreciation
1	423,116	168,925	387,370	484,213	1,463,625
2	781,137	320,958	619,792	—	1,721,888
3	781,137	288,862	371,875	—	1,441,875
4	781,137	260,145	223,125	—	1,264,408
5	781,137	234,131	223,125	—	1,238,393
6	781,137	210,481	111,563	—	1,103,181
7	781,137	199,332	—	—	980,469
8	781,137	199,332	—	—	980,469
9	781,137	199,670	—	—	980,807
10	781,137	199,332	—	—	980,469
11	781,137	199,670	—	—	980,807
12	781,137	199,332	—	—	980,469
13	781,137	199,670	—	—	980,807
14	781,137	199,332	—	—	980,469
15	781,137	199,670	—	—	980,807
Total	11,359,040	3,278,843	1,936,851	484,213	17,058,947

Minimum Gain (Treas. Reg. 1.704-2)

Year	Nonrecourse Debt	Book Basis (undepreciated)	Minimum Gain	Debt Cover %
1	11,050,000	28,292,981	—	39.1%
2	11,050,000	26,571,093	—	41.6%
3	11,050,000	25,129,218	—	44.0%
4	11,050,000	23,864,810	—	46.3%
5	11,050,000	22,626,417	—	48.8%
6	11,050,000	21,523,235	—	51.3%
7	11,050,000	20,542,766	—	53.8%
8	11,050,000	19,562,297	—	56.5%
9	11,050,000	18,581,489	—	59.5%
10	11,050,000	17,601,020	—	62.8%
11	11,050,000	16,620,212	—	66.5%
12	11,050,000	15,639,743	—	70.7%
13	11,050,000	14,658,936	—	75.4%
14	11,050,000	13,678,466	—	80.8%
15	11,050,000	12,697,659	—	87.0%

Minimum gain = max(0, nonrecourse debt − book basis). When nonrecourse debt exceeds book basis, the excess is allocated to partners whose capital accounts would go negative in liquidation — prevents phantom income for LIHTC LPs.

Investor Cash Flow (15 years)

Year	Equity Contribution	Federal Credit	State Credit	Operating CF	Depreciation	Tax Benefit	Residual Sale	Net CF	Cumulative
1	(20,438,550)	1,852,658	612,052	—	1,463,625	409,534	—	(17,564,307)	(17,564,307)
2	(206,450)	1,852,658	612,052	—	1,721,888	481,798	—	2,740,057	(14,824,249)
3	—	1,852,658	612,052	—	1,441,875	403,448	—	2,868,158	(11,956,092)
4	—	1,852,658	612,052	—	1,264,408	353,791	—	2,818,501	(9,137,591)
5	—	1,852,658	612,052	—	1,238,393	346,512	—	2,811,222	(6,326,369)
6	—	1,852,658	612,052	—	1,103,181	308,679	—	2,773,388	(3,552,981)
7	—	1,852,658	612,052	—	980,469	274,343	—	2,739,053	(813,929)
8	—	1,852,658	612,052	—	980,469	274,343	—	2,739,053	1,925,124
9	—	1,852,658	612,052	—	980,807	274,438	—	2,739,147	4,664,271
10	—	1,852,658	612,052	—	980,469	274,343	—	2,739,053	7,403,324
11	—	—	—	—	980,807	274,438	—	274,438	7,677,761
12	—	—	—	—	980,469	274,343	—	274,343	7,952,104
13	—	—	—	—	980,807	274,438	—	274,438	8,226,542
14	—	—	—	—	980,469	274,343	—	274,343	8,500,885
15	—	—	—	—	980,807	274,438	6,807,253	7,081,691	15,582,577
Total	(20,645,000)	18,526,577	6,120,516	—	17,058,947	4,773,230	6,807,253	15,582,577	—

How this is computed

Basis allocation — total basis is split across depreciation classes: 75% residential building (27.5-yr straight line, mid-month convention), 10% land improvements (15-yr MACRS half-year), 15% personal property (5-yr MACRS half-year). Acquisition basis uses the same 75/15/10 split but shifts weight toward 27.5-yr.
MACRS schedule — per-year depreciation by class plus Y1 bonus depreciation on personal property only, phased out per the TCJA schedule (80% 2023, 60% 2024, 40% 2025, 20% 2026, 0% 2027).
Credit stream — federal credits year 1-10 at 99.99% investor share (mid-month convention applies Year 1 reduction with catch-up in Year 11). State credits year 1-4 for CA 4% bond deals, year 1-10 for 9% competitive.
Operating cash flow — 15-year NOI projection minus debt service minus DDS payments (residual receipts soft loans). NOI escalates at rent growth 2.5%/yr minus opex growth 3.5%/yr.
Tax benefit — yearly depreciation × combined federal + state tax rate. For individual LPs: 37% federal + 13.3% CA LTCG, blended through IRC 469 passive loss rules.
Residual — at year 15: sale price = yr 15 NOI / exit cap rate (default 5.5%), minus perm loan balance, minus capital gains tax on the gain over book basis (20% federal LTCG + 13.3% CA).
Minimum gain — tracked each year per Treas. Reg. 1.704-2 to prevent negative capital account triggers. If accumulated depreciation pushes book basis below nonrecourse debt, the excess is allocated to partners under the minimum gain chargeback rules.
IRR — bisection search over the full 15-year cash flow series. Pre-tax IRR excludes the tax benefit line; after-tax IRR includes it. Both use the equity contribution schedule anchored to milestone dates (admission, 100% completion, stabilization, 8609, ODG expiration).