15-3. NONPROFIT CONTROLLED FOR PROFIT ENTITY (OWNER OR PURCHASER)

A nonprofit may form a for profit entity for a specific project. For example, the nonprofit may want to obtain low income housing tax credits and raise capital through the sale of the tax credits. See Section 15-5. E.3. for renewal options for nonprofit controlled for profit entities.

• A. For this Guide, the term “Nonprofit Owner” includes:

  1. A limited partnership with one or more nonprofit general partners or a sole general partner that is wholly owned and controlled by one of more nonprofit entities; or

  2. A limited liability company with one or more nonprofit managers or nonprofit managing members or a sole manager or managing member that is wholly owned or controlled by one or more nonprofit entities.

• B. The nonprofit must meet the requirements of section 15-2. A. above.