Immigration Term Paper Example | Topics and Well Written Essays - 750 words

Immigration - Term Paper Example America is a country whose growth and development was greatly derived from immigrant communities most of which later became Americans. Immigration has equally been a source of social, cultural and political confrontations that have shaped America. Immigration is of great interest to me because of the immense role it plays in society both negatively and positively. In America, for instance, immigration has been incidental to the development of the country in several ways. Immigrants provided cheap labor during the industrial evolution and early development stages of the country. Furthermore, the assimilation of immigrant communities into the American society advanced the country’s diversity profile. Conflicts created by immigration often revolve around the perceived threat to a country’s culture by the immigrants who are torn between two cultures. Such a concern leads to strife between resident communities and immigrants though most of the conflicts are merely based on p erceptions. According to Carl (45-52) immigration is a social problem because of how it creates tensions and misunderstandings in society. Basically, immigration is a source of social strife pitting resident communities and immigrant communities most of which are based on culture and economic factors. ... Carl (79-81) further suggests that immigration has immense economic implications in society. Economically, immigrants are perceived as a challenge to materials and opportunities, therefore, creating competition for resources and jobs with local communities. Other considerations include crime whereby immigration is often linked to increased levels of crime in the society or sometimes the society may resort to crime as a way of articulating the immigration problem. Immigration has been subject to literary dialogue since time immemorial and many thinkers and scholars share their diverse opinion on the vast subject. Numerous scholars examine immigration in detail evaluating the nature of a problem it presents to society. In essence, immigration as a social problem has attracted the attention of numerous researchers, authors and scholars who examine the issue from different theoretical perspectives. Robert Sampson tackles the subject from a practical perspective by unearthing the recent c onflicts and issues emanating from immigration in the United States through which he presents the prevailing conflicts regarding immigration (Sampson 28-33). In his article, Rethinking Crime and Immigration, Robert Sampson reveals that immigration is indeed a social problem, and it greatly influences the society. The role played by immigration in the political discourse particularly in the political contests has been captured by the author in a very explicit manner capturing the real essence of immigration in America. Though the author specifically focuses on immigration as a social problem in the United States, it is evident that the predicament

Abnormal assessment Essay Example for Free

Abnormal assessment Essay Describe 3 abnormal assessment findings for a child, adolescent, pregnant woman, adult or older adult which indicate a nutritional problem. What additional questions should the nurse ask based on these findings? What are the Healthy People Goals for this population? How can the nurse promote health and adequate nutrition based on this problem? Does the nutritional problem have any legal or ethical implications? Adolescents Three abnormal assessment findings for an adolescent are as follows: malnutrition, obesity, eating disorders such as anorexia or bulimia. First and foremost, being sensitive to the patient’s self-image can be crucial. Talking with them in a non-judgmental way can be key in maintain a great relationship with them. Once we establish a trusting relationship, we as nurses may begin to promote health and adequate nutrition through teaching methods. Even if the nutritional issue is outside our comfort zone we may reach out to another professional for guidance, such as a Registered Dietitian. If we didn’t have to take that big of a step we can always use not only our knowledge, knowledge of coworkers and other medical professionals, but also the books and other various tools that we have used on our educational journey. Discussing BMI according to the adolescent’s gender and age is an important factor in health promotion. One helpful guide to healthy eating is the My Pyramid. Physical activity with healthy food choices is a great way to manage your weight and maintaining your overall healthy body. Many adolescents like to skip meals or have irregular meal patterns. I know first-hand that we have busy lives but being able to be consistent and eat healthy or the healthier of choice of meals will allow us to continue to maintain a healthier body. A healthy diet should be balanced with adequate physical activity. I know some people work late nights so food choices are much more limited in this scenario. Choosing foods that aren’t high in fat will definitely help with nutrition. Sometimes people see themselves as being a certain way which alters their eating habits. You could have someone that is of healthy size and weight that may see themselves as being overweight. In their mind they need to lose this weight which affects them in the future. As they start to diet and possibly exercise more, their body may not be receiving the necessary nutrients it needs in order to maintain a healthy status. This can lead to malnutrition. Some physical signs and symptoms suggestive of malnutrition are as follows (Jensen, 2011): * Hair that is dull, brittle, dry, or falls out easily * Swollen glands of the neck and cheeks * Dry, rough, or spotty skin that may have a sandpaper feel * Poor or delayed wound healing or sores * Thin appearance with lack of subcutaneous fat * Muscle wasting (decreased size and strength) * Edema of the lower extremities * Weakened hand grasp * Depressed mood * Abnormal heart rate, heart rhythm, or blood pressure * Enlarged liver or spleen * Loss of balance or coordination Abnormal findings of malnutrition are as follows (Jensen, 2011): Mild malnutrition: 80%-90% of ideal weight Moderate malnutrition: 70%-80% of ideal weight Severe malnutrition: 70% of ideal weight Questions: What have you eaten in the last 24 hours? Is this intake typical? What did you drink in the last 24 hours? What is your typical meal pattern? Have you noticed a change in your weight? Are you concerned about your weight? Do you think that you are too fat? Do you think that you are too skinny? Do you ever use diet supplements or laxatives or limit the amount of calories you ingest? What type of physical activity do you get each week? According to healthy people 2020 the goal for nutrition and weight status is to promote health and reduce chronic disease risk through the consumption of healthful diets and achievement and maintenance of healthy body weights (Healthy People, 2012). In regards to the question, â€Å"does the nutritional problem have any legal or ethical implications,† it would depend on the situation. If the adolescent was in the care of a facility and they were not providing the necessary nutrients for them to survive then there would definitely be a legal issue at hand. If the adolescent was experiencing this issue on their own as say a self-identity issue then it is more of an ethical scenario. There are various situations and there may be a different answer to similar questions or maybe even different answers to the same question but given to different patients. This is why we do the assessments. We need to gather all the information and implement the best approach for that particular pati ent.

Their Eyes Were Watching God | Analysis

Their Eyes Were Watching God | Analysis Hurstons â€Å"Their Eyes Were Watching God† presents several themes such as speech and silence, love and marriage, and finally gender roles. Zora Neale Hurston does an outstanding job of instituting what men such as Joe Starks believed were the standard roles for the African American female. Hurston pertinently described Janie through her relationship with Joe, the metaphoric value of the mule, and her dialogue as a woman of strength, not concerned with the ideals of her white female counterparts, sitting up on a high chair and overlooking the world. Janie desired a greater purpose. In Hurstons â€Å"Their Eyes Were Watching God†, men and women inhabit separate roles. Not only are the women portrayed as the more fragile sex, Hurston essentially defines them by their relationships to and with the men. Thus, marriage is paramount in this story. The message sent here is that women can and do only obtain power through marrying powerful or, at least, motivated men. By the use of tradition, women are limited to the confines of positions of piteousness, passiveness, domesticity, and of course as sexual objectivity. The men consistently silence the womens voices, limit their actions with proprietary notions and insult their appearance and sexuality. In contrasts, when the women exhibit any traditionally male characteristics such as authority, intelligence or ambition, men deem them as unattractive and masculine. The male characters set out to prove to their peers that they are masculine by showing their wives who is in charge. This was not always due to personal desire, but also by society and at large as well as environmental pressures. The author immediately introduces the female perspective. In â€Å"Their Eyes Were Watching God†, Hurston celebrates Janie as an artist that enriches Eatonville and details her self-discovery. Without delay, on first page of the book, Hurston substantiates the contrast between men and women by initiating Janies quest to reach fruition of her own dreams and presaging the female quest theme throughout the remainder of the novel. Now, women forget all those things they dont want to remember, and remember everything they dont want to forget. The dream is the truth. Then they act and do things accordingly (Their Eyes Were Watching 1). As a Black woman, Janie asserts herself beyond expectation and the persistence that she consistently shows characterizes her unrelenting quest for true love—the kind she dreamed of as a child. She is aware of her status in society, but is unwavering in her determination to disregard it. Anyone or anything attempting to encumber Janie from her mission for happiness annoys her. â€Å"So de white man throw down de load and tell de nigger man tuh pick it up. He pick it up because he have to, but he dont tote it. He hand it to his womenfolks. De nigger woman is de mule uh de world so fur as Ah can see, opines Janies grandmother in an attempt to justify the marriage that she has arranged for her granddaughter† (Their Eyes Were Watching 14). The excerpt founds the presence of the substandard status of women in this culture, a status that Janie must reverse, in some way, in order to surface as a heroine. Despite this obstacle, Janie refuses deterrence from attaining her dream. In â€Å"Their Eyes Were Watching God†, Zora Neale Hurston reveals the importance of gender roles and their place in African American culture during the 1930s. In Chapter 6, Hurston displays the importance males exhibiting superiority their female partners and their attempts to force them into roles of subservience. In this chapter, Joe Starks attempts push Janie into a passive role by hushing her in conversations, physically abusing her in their home, and handling her as an item in his possession. The author establishes this early in the novel to serve as a catalyst for Janie to make the decision that her personal growth and development as a strong woman will only materialize when she escapes the mold into which Joe has forced her. Hurston exhibits that Janie should be allowed to have the right to do what white women do on a constant basis; perch on high stools on their porches while relaxing. â€Å"Everybody was having fun at the mule-baiting. All but Janie† (Their Eyes Were Watching 56) demonstrates the way Joe stresses that Janie give the impression that she is living the white womans dream of relaxing at home and being civilized, as that is the role dictated by her gender and because it promotes the his portrayal as a powerful leader of the town. Even when Janie pleads, â€Å"Taint nothin so important Ah got tuh do tuhday, Jody. How come Ah cant go long wid you tug de draggin-out?† (Their Eyes Were Watching 60) confirms her desire to abandon the preset, generalized roles of gender that women faced during this period. Janie wishes to forge her own path and do what brings her personal satisfaction as a woman and not what the perception of contentment is for all women. Janies idea of pleasure, ho wever, is not present in the old-fashioned roles that the women of the 1930s were expected to accept. Later in the chapter, we read, â€Å"Here he was just pouring honor all over her; building a high chair for her to sit in and overlook the world and she here pouting over it!† (Their Eyes Were Watching 62). Joe does not seem to grasp that satisfying Janie does not include giving her a life that mimics that of a white womans. Instead, Janie would rather immerse herself into her own culture, celebrating the essentials that are intrinsic to being a black woman. Unfortunately, Joe either cannot or will not fulfill this for her, thus she elects to entertain the company of Tea Cake, who seems to gain happiness from partaking in lifes simpler pleasures, such as singing, storytelling, dancing and fishing—including Janie in his activities. All the way through the novel, we continue to witness the outward display of the superiority that men feel over women. If their spouses do not obey or follow the strict roles of gender, it is commonplace for them to endure beatings, not unlike the mule in chapter six. Even something as small as an undesirable meal, could result in physical abuse. Many men believe that women are in need of guidance in every aspect of their lives, needing instructions for basic tasks on a consistent basis. This sentiment solidifies the belief of the male gender that their sex is greater and superior over women. Many men feel that women are completely ignorant and need men to tell them what to do all of the time; a sentiment that adds fuel to them feeling their gender is greater to their female counterpart. In chapter six Janie objects, â€Å"You sho loves to tell me whut to do, but Ah cant tell you nothin Ah see!† He responds, â€Å"Dats ‘cause you need tellin, It would be pitiful if Ah didnt. Somebody got to think for women and chillun and chickens and cows. I god, they sho dont think none theirselves† (Their Eyes Were Watching 71). Here, Joe alludes that women have brainpower akin to a chicken or clumsy cow and that they should embrace their roles as the lesser mate. Eventually, Janie escapes her traditional female mold of speaking only when spoken to and obeying mindlessly. She finally finds her voice at the end of chapter six when she says to Joe, â€Å"Sometimes God gits familiar wid us womenfolks to and talks His inside business. He told me how surprised He was†¦and how surprised yall is goin tuh be if you ever find out you dont know half as much ‘bout us as you think you do. Its so easy to make yoself out God Almighty when you aint got nothin tuh strain against but women and chickens† (Their Eyes Were Watching 75). Janie communicating with Joe in this fashion serves to inform Joe that she believes that God speaks to both sexes equally. She is standing up to the leader of the town. Janie wants Joe to understand that he is not the god of the town because she too can be in touch with God. In addition, she wants Joe to know that she is aware that his gender does not make him a supreme being over her or any woman. This marks a both an evolution and revolution for Janie as a character. We now begin to see her inner thoughts. She is now prepared to battle for her equality and liberation. By the chapters conclusion, we witness a woman refusing to allow men to continue to silence and demanding equal treatment. Janies metamorphosis from a passive woman to one wishing to take an active role in shaping the rights and duties of the female gender is established. â€Å"She knew now that marriage did not make love. Janies first dream was dead, so she became a woman† (Their Eyes Were Watching 24). No longer afraid to challenge her grandmothers staunch expectations, Janie realizes that her grandmothers archaic views of the role of women as pathetic and weak beings with the inability to survive without male protection—even with the absence of love in the relationship, represent boundaries on her full potential. She loathed her grandmother. â€Å"†¦ Nanny had taken the biggest thing God ever made, the horizon† (Their Eyes Were Watching 85-86). Still, Janie is undaunted and follows her to follow her instincts, including leaving her first husband and marrying her second one, in the absence of a divorce. â€Å"Janie hurried out of the front gate and turned south. Even if Joe was not there waiting for her, the change was bound to do her good† (Their Eyes Were Watching 31). The blather and gossip that permeates her small town when she takes a younger man and leaves with him, after being left a widow following the death of her second husband, does not hinder her path even slightly. The happiness she finds in her relationship with Tea Cake is that much sweeter as she has made the decision to go through it alone. Janies moment of personal triumph is â€Å"Discovering the two things everybodys got to do fuh theyselves,† (Their Eyes Were Watching 183). â€Å"They got tuh go tuh God, and they got to find out about livin fuh theyselves,† are the sentiments Janie shares at the end of her journey (Their Eyes 183). Hurston has depicted a female character as an evolving heroine, an architect of her own destiny, and one who has a full grasp on navigating the voyage to self-awareness. Says Mary Helen Washington in the Foreword of Their Eyes Were Watching God, â€Å"†¦for most Black women readers discovering Their Eyes for the first time, what was most compelling was the figure of Janie Crawford powerful, articulate, self-reliant, and radically different from any woman character they had ever before encountered in literature. Janie Crawford is defiant; she defies men, but most importantly, she defies our own preconceived notions of what the role of an African-American woman should be in modern literature.† The definitions and roles of gender for both male and female characters were clear in the 1930s. Janie is symbolic of many women today in her refusal to accept the preconceptions about her duties and abilities. In the 21st century, the majority of men have learned, though some reluctantly, to accept and appreciate the equal abilities and thoughts of modern women and Hurston had the foresight to give women a voice that had previously been silent in literature.

Molecular Switches :: essays research papers fc

We live in the technology age. Nearly everyone in America has a computer or at least access to one. How big are the computers you are used to? Most are about 7" by 17" by 17". That's a lot of space. These cumbersome units will soon be replaced by something smaller. Much smaller, we're talking about computers based on lone molecules. As far off as this sounds, scientists are already making significant inraods into researching the feasability of this. Our present technology is composed of solid-state microelectronics based upon semiconductors. In the past few years, scientists have made momentus discoveries. These advances were in molecular scale electronics, which is based on the idea that molecules can be made into transistors, diodes, conductors, and other components of microcircuits. (Scientific American) Last July, researchers from Hewlitt-Packard and the University of California at Los Angeles announced that they had made an electronic switch of a layer of several million molecules and rotaxane. "Rotaxane is a pseudorotaxane. A pseudorotaxane is a compound consisting of cyclic moles threaded by a linear molecule. It also has no covalant interaction. In rotaxane, there are bulky blocking groups at each end of the threaded molecule." (Scientific American) The researchers linked many of these switches and came up with a rudimentary AND gate. An AND gate is a device which preforms a basic logic function. As much of an achievement as this was, it was only a baby step. This million-moleculed switch was too large to be useful and could only be used once. In 1999, researchers at Yale University created molecular memory out of just one molecule. This is thought to be the "last step down in size" of technology because smaller units are not economical. The memory was created through a process called "self-assembly". "Self-assembly" is where computer engineers "grow" parts and interconnections with chemicals. (Physics News Update, 1999) This single molecule memory is better than the conventional silicon memory (DRAM) because the it live around one million times longer. ' "With the single molecule memory, all a general-purpose ultimate molecular computer needs now is a reversible single molecule switch," says Reed (the head researcher of the team.) "I anticipate we will see a demonstration of one very soon." ' (Yale, 1999) Reed was correct. Within a year, Cees Dekker and his colleagues at Delft University of Technology in the Netherlands had produced the first single molecule transistor.

Reliable Source

Associate Level Material Appendix J Reliable Sources Worksheet Locate two sources in the University Library on a topic of your choice. Provide the required information for both sources. Source 1 †¢ Author: Kaylin , Lucy †¢ Date: Dec2011 †¢ Title: The Family Man †¢ Publication: Write a 100- to 150-word response to each of the following questions: †¢ Is the source reliable? How do you know? Yes, the source is reliable it explains exactly what your looking for as in the topic. The information provides tell you what’s it focus as The Family Man.In short detail the abstract get directly to the point on what the source of information will be about. What he does as a family man and how he is consider as The Family Man. He is not a father but he does support a small family of orphaned children and his intentions for them are good. †¢ Is the information relevant to the topic? Yes, the available information is relevant to the topic, while reading the abstra ct of the back it gives you a brief summary on what it is about. The Family Man is a man that is not a father but who supports a small family of orphaned children.He doesn’t get emotionally attached to the kids for what ever reason I don’t know but as a man he does support them and have good intentions for them but he just doesn’t express his emotions to them. This is a typical man at times. So yes The Family Man abstract does have relevant connections to the topic. †¢ Does the information reflect a bias on the author’s part? If so, what is the bias? With this source no this is information doesn’t reflect a bias on the author’s part. No one is against or being treated unfair. Source 2 †¢ Author: Kriesberg, Louis †¢ Date: May67 Title: Rearing Children for educational achievements in fatherless families. †¢ Publication: Write a 100- to 150-word response to each of the following questions: †¢ Is the source reliable? How do you know? Yes, this source is reliable it gives you accurate information about the topic and leads you to honestly of why married and husbandless mothers are compared to assess how certain concomitants of fatherless families may be related to attitudes and behaviors relevant for their children’s educational achievement. †¢ Is the information relevant to the topic? Yes, the available information is relevant to the topic.While reading the abstract of the back it gives you a brief summary on what it is about. Rearing children for educational achievement in fatherless families is basically explaining about the students that doesn’t have a father are not focused into the educational achievement and seem to me their always getting compared to the kids that has fathers and that’s focus into the educational achievement. †¢ Does the information reflect a bias on the author’s part? If so, what is the bias? Yes, this information is a reflection of bias on the author’s part being that the children with father’s always getting compared to the children with no father.

Investing in Low Income Housing Tax Credits Essay

Overview of the LIHTC The Low Income Housing Tax Credit (LIHTC) provides incentives for corporations and individuals to invest in the acquisition, development and rehabilitation of affordable housing. The program offers federal tax credits to private equity investors that work with profit or non-profit developers in constructing or renovating rental properties for low-income tenants, those who earn 60 percent or less of the median family income for their county. As of 2010, the program has sparked the construction of over 1.7 million housing units throughout the country. The IRS allocates federal tax credits to Housing Credit Agencies (HCAs) in each state based on its population. HCAs award credits to housing developers based on their Qualified Allocation Plan (QAP), a rigorous and competitive application used to determine which developers will receive the credits. Once credits are acquired, equity investors purchase an interest in the business entity generating the tax credits, namely a limited partnersh ip or limited liability company. The equity generated from the investor’s purchase is used to fund the property development. The tax credits are redeemed annually by investors over a ten-year period following the date that the property becomes operational, or â€Å"placed in service.† The number of tax credits, and subsequently the amount of equity raised, is calculated by computing the eligible basis, or the dollar amount of all depreciable costs of the project (which excludes the cost of land acquisition and operating reserves) minus ineligible sources of funding like grants or federal subsidies. The eligible basis is then multiplied by the percentage of eligible tax credit units in the project (at least 20 percent and up to 100 percent of all units in the building) to calculate the â€Å"qualified basis.† The investor may later claim either 9 percent or 4 percent of the qualified basis amount in tax credits per year, depending on whether the project is a new construction or rehabilitation of an existing structure.. As of March 2012, the average price for a credit is around $.94. Price fluctuates depending on the geography of the deal, the size of the project, the perceived risk of failure, and whether the project is a new construction or rehabilitation. In order to redeem the credits, the property must rent either 20 percent or more of the units to tenants whose incomes are at or below 50 percent or less of the area median gross income, or 40 percent or more of the units to tenants whose incomes are at or below 60 percent or less of the area median gross income. The property must fulfill these and other operational requirements for a 15-year compliance period. Failure to meet these requirements during the compliance period results in an IRS recapture of tax credits plus interest and penalties. Many states offer their own affordable housing tax credits to provide further incentives by increasing potential returns. Projects in certain areas (Difficult Development Areas) receive a 30 percent increase in qualified basis as well. Options for Investment in LIHTC LIHTC transactions are structured such that the developer manages the day-to-day operation of the property while the investor takes a passive role in management and collects virtually all the tax credits. The parties create a limited partnership or limited liability company where the investor is typically a 99.99% limited partner or non-managing member and the developer is a 0.01% general partner or managing member. This method shields investors from liability beyond their capital contributions and allows the developer to maintain control over management affairs. There are two methods of investing in LIHTCs. The first is a direct investment or private placement, where the investor purchases the rights to future tax credits from a single developer in return for an equity contribution. The developer and investor form a limited partnership where the investor retains a 99.99% ownership interest and claims use of 99.99% of the tax credits and other benefits. Large banks and blue-chip corporations are the typical direct investors, mainly because they possess vast amounts of financial and administrative resources. Private placements are adequate namely for single entities that manage their own investment affairs and desire complete transparency throughout the project. These investors generate more net equity since they save costs otherwise incurred by hiring syndicated funds to choose and underwrite the affordable housing development project. Another avenue through which to invest in tax credits is with a syndicator, a financial intermediary that raises funding from many investors, usually on an annual basis, and makes equity capital contributions to multiple affordable housing projects. Indirect Investment through syndicated funds provides a means by which individual investors, small community banks, and small corporations without the resources of large banks can invest in LIHTCs. A syndicator will attract investors and form a limited partnership agreement where the syndicator typically holds a .01% interest as general partner and various investors will comprise the other 99.99% ownership interest as limited partners. This limited partnership syndicate fund will then become the 99.99% limited partner in several LIHTC projects to allow tax credits to pass through to investors. The syndicator investigates the market for affordable housing development and chooses a number of projects in which to invest. The syndicator then directs private equity capital from the limited partners of the syndicate fund to multiple affordable housing developments and returns tax credits back to each investor in proportion to their capital contribution. A few syndicate funds have missions that are aligned with non-profit developers. A syndicator’s experience with affordable housing development is invaluable to investors as it minimizes risk and increases investor confidence. The syndicator does all due diligence and underwriting for the project, so investors can take a passive role. Syndicate funds are ideal for investors that cannot afford to hire relationship managers, compliance specialists, and underwriters to oversee development. A Worthwhile Investment Alternative A tax credit provides a dollar-for-dollar reduction in tax liability, unlike deductions that simply reduce the amount of taxable income for a particular taxable year. Even though investors contribute capital based on the amount paid per tax credit, other tax benefits are transferred to the investor in the form of passive losses and deductions available to any holder of rental real estate property. These include property depreciation deductions, interest expenses, business and maintenance costs, and others. Savings from tax-deductible expenses may not have the financial impact of a tax credit, but it provides a quantifiable saving to the investor that helps add measurable value to tax credits beyond the amount of proportional tax liability they reduce. A qualifying tax credit investment results in a decrease of tax liability. The economic return on the investment, therefore, is not subject to state or federal taxation, unlike dividends or interest income from stocks or bonds. A dollar amount of taxable income is thus inherently less valuable than an identical amount of tax credits. Certain passive loss restrictions and the Alternative Minimum Tax render tax credits less useful for the large majority of individual investors. Nonetheless, LIHTC projects were giving investors returns as high as 25%-30% during the early stages of the program. After growing competition increased pricing in the market for tax credits, yields have consistently shown 4%+ annual returns in recent years. LIHTC projects provide excellent returns for the risk involved, considering other investment alternatives available. While the stock market has historically given investors long-term returns of approximately 10% per year on average, there are sharp fluctuations from year to year. The stock market is also considered a more risky investment in comparison to U.S. treasury bonds or other corporate notes. The yields on these safer bonds are much less than that of the stock market. Investments in tax credits provide an interesting combination of risk mitigation potential and impressive earning yields. Unfortunately, the average investor has no control over the valuation of a certain corporate security, much less the performance of a mutual or index fund. However, private placement investors and syndicate fund managers can and do provide for stringent oversight requirements through contractual obligations imposed on the developer, which in turn helps mitigate risk of project failure. A rise in the valuation of a corporate security usually requires an indicator of increased earnings in the future, whether it is the introduction of a more efficient manufacturing technique, the release or upgrade of a new or existing product, or a similar corporate action. Any increase in the value of a security may be short-lived. An investor only realizes gain after a sale; that gain is taxed. LIHTC projects, on the other hand, do not require entire securities markets to move in order to obtain a profit. Aside from rigorous paperwork and professional fees, the tax credits will eventually fall in the hands of the investors so long as the developer does not fail to meet the various compliance requirements for the specified period. With continuous oversight, investors and fund managers can establish timelines for performance that may readily identify any setbacks or obstacles to completion. This may afford time to expedite construction or development and perhaps cure any potential defects in the plan. On the downside, securities markets provide instant liquidity; LIHTC projects require at least 11 years to harvest all profits. Timelines provide further protection when equity contributions are made in response to the developer meeting certain milestones that render project completion more likely. By disbursing equity in stages, investors exert more control over the project’s development and may elect to alter the course of the project. For instance, the investor may attempt to remove the developer if confidence is undermined. The 15-year compliance period provides an identifiable date of exit, after which all profits (in the form of tax credit use) have been harvested. If investors decide to exit the venture, a secondary market has emerged where an investor may be able to sell the credits to third parties. Legislation passed in 2008 allows limited partners to sell their ownership interests in affordable housing properties without facing recapture so long as the properties continue to operate as affordable housing. This allows a shortened holding period of up to 11 years as long as the property meets the 15-year compliance requirements. These advantages are largely unavailable to stock market investors and make tax credits a safe, viable and profitable investment alternative. These benefits apply uniformly to any tax credit investor. Large Banks, Larger Benefits Large banks and financial institutions are provided with a number of benefits that are generally inapplicable to individual and corporate investors, which in turn make credits more valuable and increases their market price. Banks subject to the Community Reinvestment Act (CRA) are required to engage in certain activities that improve community development. Direct investments and loans made to LIHTC projects, or syndicated funds that invest therein, are considered qualified activities under the CRA. Banks receive positive CRA consideration not only for these loans and investments to community projects, but also when equity is transferred to LIHTC projects that serve broader statewide or regional areas that include a particular bank’s assessment area. An unsatisfactory CRA rating can cause banks to be denied or delayed in undertaking certain business activities like mergers, acquisitions, or the expansion of services. Thus, banks have strong incentives to invest in affordable housing development. LIHTCs are often a top choice for banks, who are obliged to make community development contributions, because not all CRA qualified activities provide similar returns. Financial institutions also benefit from establishing banking relationships with real estate developers. This allows banks to expand their revenues by providing new services to the project like pre-development loans, construction loans, mortgage financing, and credit lines. Bridge loans are especially enticing, where banks loan large amounts of capital to syndicated funds or other Private Placement investors without the cash reserves to make the up-front equity contributions required by developers before any tax credits can be redeemed. Moreover, banks have the financial capacity to create long-lasting resources to assist in affordable housing investment. The underwriting and due diligence for a LIHTC project requires a number of services and incurs various costs. While syndicated funds spread these costs over a number of investors, banks are in a position to pay for these costs themselves. By establishing separate departments to oversee tax credit financing, banks make a one-time investment in an oversight apparatus that will operate over an indefinite number of LIHTC projects. These in-house professionals will increase in value as their experience expands and efficiency improves. Any bank with the capacity to conduct private placement investing in LIHTCs probably does so. Syndicated Funds: Investment Mechanisms for the Unsophisticated Tax Credit Investor A multi-investor syndicated fund provides a number of additional benefits to potential tax credit investors. It is helpful to analogize syndicated funds to mutual funds for the purpose of identifying their advantages. Just like mutual funds, where fund managers collect funding from many investors and create a diversified portfolio that is professionally managed, syndicated funds act in a similar fashion. Syndicated funds invest in multiple affordable housing developments, often in various geographic regions and with different housing developers. This allows investors to spread risk amongst different LIHTC projects so that if one project fails, their entire equity commitment is not lost. Investing with multiple investors allocates risk of loss more evenly and makes LIHTC investments a safe investment alternative. Furthermore, reputable syndicated funds are professionally managed by experienced, sophisticated tax credit professionals that probably have more knowledge about tax credit investing than any prospective investor. Few institutions and entities have enough capital reserves to fund an entire project single-handedly; syndicated funds combine investor contributions, allowing small entities like community banks and mid-size companies to have the flexibility of choosing how much capital to contribute to tax credit investment. The end result is an excellent mechanism through which unconventional tax credit investors can participate in the competitive market for tax credits. Even though funds collect a percentage fee, diversified portfolios will likely contain projects in DDAs to provide marginal increases in tax benefits. Corporations and Tax Credits: A Good[will] Investment. LIHTC are beneficial to corporations because annual tax credits have a positive impact on earnings per share, since credits reduce tax liability without diluting earnings. Tax credits are usually a profitable investment because most companies sustain consistent tax liability for years on end. Tax credit investment declined during the 2008 market downturn, but has steadily increased with general economic improvement. Companies like Google, Verizon, Liberty Mutual, and others have invested in affordable housing developments across the country. An additional and measurable economic benefit to corporations is the increased value of a trademark or goodwill associated with a company that invests in community development. This type of investment may also attract positive publicity and media coverage, which in turn may increase corporate securities valuation. Large corporations are also in a coveted position to undertake direct investment and avoid paying fees to syndicated funds. Safe, but Not That Safe. While LIHTC investments may be safer than comparable investment with similar yields, the risks must be identified for informed decision-making. Potential tax credit recapture and loss is the greatest risk—the project must maintain specific requirements over a period of 15 years and strict deadlines must be met. The investor must assume the risk of any impediment to completion of construction, no matter how farfetched, and recapture liability remains with the initial investor even if the credits are sold on the secondary market. Risk of failure extends for a prolonged period of 15 years where strict operational requirements must be met. Due to the speculation involved in predicting construction costs, securing subsequent financing, and meeting compliance deadlines in light of potentially unforeseen adverse events, a project must be very precisely calculated to increase the chance of success. Entities and individuals that invest in syndicated funds are in a better position to identify risks due to stringent government-imposed requirements for prospectuses and offering memoranda to be distributed to all potential investors. Inexperienced syndicators might overlook a key responsibility that can cause the project to fail. Repurchase obligations arguably provide a false sense of security to investors because most developers have small balance sheets and cannot afford to match the investor’s contributions. The risks involved in LIHTC investment can be mitigated with proper planning, continuous oversight, and an experienced syndicator. Banks with in-house asset management units can oversee property maintenance. Although investors cede lien priority to the primary mortgage holder, foreclosure rates are relatively low and occupancy rates relatively high. Tax credit projects are viable investment alternatives. ——————————————– [ 1 ]. Catherine Such, Low Income Housing Tax Credits. Federal Reserve Bank of San Francisco Community Investments (Mar. 2002), http://www.frbsf.org/community/investments/lihtc.html. [ 2 ]. Michael J. Novogradac, Investing in Low-Income Housing Tax Credits, OCC Community Developments. (Mar. 2010), http://www.occ.gov/static/community-affairs/community-developments-investments/spring06/ investinginlowincome.htm. [ 3 ]. Id., See Understanding Low Income Housing Tax Credits: How to Secure Equity Investments and Evaluate Syndication Options. Corporation for Supportive Housing (Mar. 2006), http://documents.csh.org/documents/ ResourceCenter/DevOpsToolkit/UnderstandingLIHTCspdf.pdf. [ 4 ]. Sherrie L. Rhine, Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks. Community Affairs Development (Feb. 2008), Found in Real Estate Law Clinic Course Reader, at p. 75. [ 5 ]. Lance Bocarsly, Real Estate Law Clinic Lecture. (Thursday September 6, 2012, 4:30pm.) [ 6 ]. Understanding Low Income Housing Tax Credits: How to Secure Equity Investments and Evaluate Syndication Options, supra, Corporation for Supportive Housing (Mar. 2006.) [ 7 ]. In actuality, the percentage of qualified basis that determines the amount of tax credits is not exactly 9 or 4 percent. The rate for the 4 percent credit floats in accordance with the Applicable Federal Rate and may fluctuate above or below 4 percent. The 9 percent credit will float beginning in 2013, although current legislation has been proposed to extend the 9 percent credit floor. House of Representatives Bill 3661 is making its way through Congress. See Mark Anderson, Tax Credit at Risk for Low Income Housing. Finance and Commerce (April 26, 2012, 4:35 pm). Available at http://finance-commerce.com/2012/04/tax-credit-at-risk-for-low-income-housing/. [ 8 ]. Low-Income Housing Tax Credit: Facts & Figures, Novogradac Affordable Housing Resource Center. http://www.novoco.com/low_income_housing/facts_figures/index.php. [ 9 ]. Tim Iglesias and Rochelle E. Lento, The Legal Guide to Affordable Housing Development. Found in Real Estate Law Clinic Course Reader, at p. 28. [ 10 ]. Rhine, supra, Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks.† Found in Real Estate Law Clinic Course Reader, at p. 87. [ 11 ]. Understanding Low Income Housing Tax Credits: How to Secure Equity Investments and Evaluate Syndication Options, supra, at p. 4. [ 12 ]. Id. [ 13 ]. Id. [ 14 ]. Novogradac, supra, Investing in Low-Income Housing Tax Credits. [ 15 ]. James L. Logue III, How LIHTC Funds Can Help Banks Invest in Affordable Housing. OCC: Community Developments (Spring 2006). http://www.occ.gov/static/community-affairs/community-developments-investments/ spring06/howlihtcfunds.htm. [ 16 ]. Id.