Involvement and Approvals Needed by Grantees
On a related note, OZ investors interested in a “path of least resistance” are not likely to gravitate to projects with heavy government involvement and approvals by governmental agencies charged with regulatory compliance. However, to ensure compliance, grantees need to be involved at all stages of the project. To attract OZ equity capital in affordable rental housing projects, the grantee may need to emphasize their experience administering federal programs and complying with federal requirements. The grantee and developer should also be prepared to smartly execute the applicable federal requirements in an effective and non-threatening way.