Federal historic tax credit investors have one recurring fear: a foreclosure event during the five-year compliance period that unwinds the credits. An unsubordinated ground lease removes the classic path for that fear — because there is no fee mortgage anywhere in the structure.
The ground lease sits at the bottom, unsubordinated and debt-free. The developer's leasehold sits above it, financeable with full lender protections. The HTC master lease sits inside the leasehold, wrapped in non-disturbance from us. A leasehold-loan default changes who operates the building — it cannot terminate the master lease or touch the land. Rent default has notice and cure at every layer before anything else can happen. The credits stay where they belong.
Yes. We deliver a recognition and non-disturbance agreement to the HTC master tenant as part of documentation. Institutional credit investors sign next to us regularly precisely because the fee carries no debt.
No. The rehabilitated building and its qualified expenditures live in the leasehold and master-lease layers. The ground lease is a land interest under all of it, with cure rights stacked so termination is never the first, second, or third outcome.
That is usually why we are in the deal: the fee purchase monetizes land value into the project budget without adding debt or diluting the sponsor.
Send the budget, the credit structure, and the master-lease form. We will show you where the land money fits and paper the non-disturbance your investor needs.
Email us the property