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Historic Tax Credits News Briefs - August 2011

Reps. Aaron Schock, R-Ill., and Earl Blumenauer, D-Ore., have introduced legislation to modernize the federal historic tax credit (HTC). H.R. 2479, the Creating American Prosperity through Preservation (CAPP) Act of 2011, would provide a 30 percent boost for small deals of less than $5 million in qualified rehabilitation expenditures and provide a 2 percent HTC boost for achieving energy use savings that are at least 30 percent greater than established industry standards for similar buildings. The CAPP Act would also eliminate the federal taxation of the proceeds of a state HTC transaction for both state credit certificate sales and credits allocated through partnerships. Additionally, the bill would expand the number of properties that qualify for the HTC by indexing the eligibility date for the 10 percent non-historic rehabilitation tax credit so that both the 20 percent and 10 percent credits would apply to buildings 50 years old and older. Finally, supporters of the CAPP Act say it would help target the HTC's impact to low-income communities by allowing not-for-profits to act as HTC project sponsors and building tenants. A copy of the bill can be found online at www.historictaxcredits.com.

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The National Park Service (NPS) has revised the historic preservation certification application for 2011, and requests that applicants begin using the new application immediately. NPS said that state historic preservation offices will not accept applications on the old form after January 1, 2012. The new application, in PDF form, is not fillable. The agency said it will post a fillable PDF version of the form as soon as one is available. Download the 2011 application at www.nps.gov.

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THC Affordable Housing and Somerset Development Company celebrated the grand opening of Fort View on June 29 and Webster Gardens on May 25. The two affordable housing properties are located in northwest Washington, D.C. The companies purchased and converted the historic properties to 114 housing units while preserving their historic character. Fort View consists of 62 units with 18 units set aside for very low-income households; Webster Gardens has a total of 52 units, 16 of which are reserved for very low-income households. Community spaces and a computer lab have been added to facilitate supportive resident services at both properties. Enterprise Community Investment provided low-income housing tax credit (LIHTC) and HTC equity for each property. Other financing sources include the D.C. Housing Agency, the D.C. Department of Housing and Community Development, Bank of America, Freddie Mac and Prudential.

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The St. Louis Industrial Development Authority provided the last piece of financing needed to redevelop the Metropolitan Building in St. Louis, Mo.'s Grand Center district, the St. Louis Post-Dispatch reported. The agency approved nearly $21 million in tax-exempt bonds for the development, which will offer artists' studios, a fitness center and parking. The project also received state and federal HTCs and LIHTCs, state brownfields credits, and city loans. Dominium Development plans to complete construction on the Metropolitan Building by July 2012.

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Maine's Legislature passed a bill that would eliminate the sunset date for the state's historic preservation tax credit, which was scheduled to expire at the end of 2013. L.D. 742 removes the sunset date and requires that the Maine Historic Preservation Commission periodically analyze the use of the tax credits. The measure instructs the commission to report to the Legislature beginning in 2013 and every four years thereafter. The bill's enactment will stabilize the investment pipeline for future projects, according a report released in May by Maine Preservation. The report, called "The Economic and Fiscal Impact on Maine of Historic Preservation and the State Historic Preservation Tax Credit," said the credit program is responsible for creating approximately 595 jobs in the state each year. Copies of the report and the legislation are available online at www.historictaxcredits.com.

Journal Category:

Historic Tax Credits

Authors:

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