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Historic Tax Credits News Briefs - August 2012

The Ohio Department of Development (ODOD) awarded $35.8 million in Ohio Historic Preservation Tax Credits to 18 owners planning to rehabilitate 44 historic buildings in 10 communities. The agency expects the projects will leverage more than $237 million in private investment. The awards were made possible through a funding renewal in the state’s fiscal year 2012-2013 budget, which allocates $60 million annually to the HTC program. The program provides tax credits equal to 25 percent of qualified rehabilitation expenditures. To date, ODOD has awarded a total of $290 million in state HTCs to 142 projects in 34 cities. More information about the recipients of the eighth round of tax credits is available at the Ohio Department of Development.

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The New York Legislature in June approved legislation to increase the amount of state HTCs available for historic redevelopment projects from $5 million to $12 million. The bill, S. 6134, would increase the maximum threshold for an award while maintaining the award amount at 20 percent of eligible expenditures. The bill’s sponsors say its enactment would encourage developers to rehabilitate larger and more blighted properties. The change may also increase the number of properties that will be rehabilitated under the program. If the governor signs the bill, the cap increase would apply to taxable years beginning on or after January 1, 2012.

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New Castle Hotels and Resorts and RockBridge have undertaken a $40 million renovation of the Eastland Park Hotel in Portland, Maine. The owners will strip the 1927 building to its earliest structural components and update it with Westin brand services and amenities before reopening it as the Westin Portland Harborview. A significant portion of the renovation will be financed by HTC equity from U.S. Bancorp Community Development Corporation. U.S. Bank Commercial Real Estate provided first mortgage financing. The hotel is scheduled to open in the spring of 2013.

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Dorfman Capital announced the completion of a Massachusetts HTC sale associated with Ingraham Place, an affordable housing property in New Bedford, Mass. Women’s Institute for Housing and Economic Development transformed the formerly vacant building into 19 units for income-eligible households participating in support services. Dorfman Capital arranged a forward commitment to purchase and sell Ingraham Place’s HTCs to an institutional investor. The state program offers a 20 percent tax credit for the rehabilitation of certified historic commercial properties. Ingraham Place opened in 2011.

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Legislation to restore Rhode Island’s HTC program was defeated in the General Assembly after a consensus could not be reached on H. 7732, S. 2269 or S. 2313. Preservation advocacy activities were not enough to overcome the chilling effect of 38 Studios’ bankruptcy on proposed economic development programs, according to Grow Smart Rhode Island (GrowSmartRI). Rhode Island Economic Development Corporation awarded a $75 million loan guarantee and film tax credits to the Providence-based video game company, which filed for bankruptcy in June. GrowSmartRI said it plans to build on its efforts from the past year to renew the state HTC program.

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American Express and the National Trust for Historic Preservation (NTHP) announced an additional 16 historic places that will receive preservation grants in the Partners in Preservation competition in New York, N.Y. Forty sites from the five boroughs competed for public votes for preservation funding from American Express. To date, American Express and NTHP have awarded $3 million to preserve the city’s historic buildings. The 16 organizations were selected to receive the funds remaining after the awards were announced for the four popular vote winners: Brooklyn Public Library, Congregation Beth Elohim, New York Botanical Gardens and Bartow-Pell Mansion Museum. More details about the program and the award recipients are available at Partners in Preservation.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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