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Historic Tax Credits News Briefs - April 2016

On Feb. 1, Oklahoma state Sen. Michael Mazzei introduced S.B. 977, a bill that would place a two-year hold on state-issued historic tax credits (HTCs). The moratorium would be placed on the ability to claim credits during certain time period, and would last from July 1, 2016, through June 30, 2018. At press time, the bill still remained in the state Senate. More information is available at oksenate.gov.

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The House Natural Resources Subcommittee on Federal Lands held a hearing Feb. 11 on the National Historic Preservation Amendments Act (H.R. 2817). The bill would reauthorize the Historic Preservation Fund (HPF), which provides funding for the partnership among federal, state, tribal and local governments working to preserve historic properties. National Park Service (NPS) representatives testified in support of the bill, as did the representatives of the National Conference of State Historic Preservation Officers. The Advisory Council on Historic Preservation (ACHP) recommended that the subcommittee consider amending the bill to provide permanent authorization for the HPF rather than the 10-year reauthorization called for in the bill. The HPF has a remaining balance of $3 billion that can be drawn upon in the short term.

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The NPS issued the report, “Federal Tax Incentives for Rehabilitating Historic Buildings, Annual report for Fiscal Year 2015.” The report discusses the impact of the HTC in 2015. The report indicated that NPS approved nearly 1,300 proposed projects worth $6.6 billion in rehabilitation work in fiscal year 2015. Additionally, 870 completed projects worth $4.5 billion in rehabilitation work were certified. These completed projects created more than 85,000 jobs. HTCs were also used in the construction or renovation of nearly 24,000 housing units in 2015. This number includes more than 8,000 new low- and moderate-income housing units. The report also highlighted the success the program has had since its enactment. More than 41,000 projects have been completed using HTCs since the program’s inception in 1976, and the HTC has stimulated more than $78 billion in preservation activity. The report and statistical analysis is available at www.historictaxcredits.com.

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Sustainable Development Partners announced Feb. 10 plans to convert the former Westport Middle School to Westport Commons in Kansas City, Mo. The $20 million first phase of the redevelopment plan will transform the 160,000-square-foot space into a co-working campus where multiple tenants can work in a collaborative environment. AltCap CDFI provided $10 million in new markets tax credits (NMTCs). Enterprise Financial CDE, a subsidiary of Enterprise Financial Services Corp., provided $5 million in NMTCs plus bridge financing on HTCs. U.S. Bancorp Community Development Corp., a subsidiary of U.S. Bank, invested $4.9 million in NMTC equity and $3.1 million in HTC equity. Missouri Bank provided a $5 million loan. The project is scheduled for completion at the end of 2016, with tenants moving in in early 2017.

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The city of Baltimore enacted Ordinance No. 16-454, Council Bill No. 15-0585, effective Feb. 29. The ordinance amends the city’s historic improvements, restorations and rehabilitations property tax credit. The sunset date was extended from Feb. 29, 2016, to Feb. 28, 2021. In addition, the eligibility requirement increased from more than $3.5 million to more than $5 million in qualified rehabilitation costs.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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