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Historic Tax Credits News Briefs - August 2017

The Michigan Historic Preservation Network announced June 24 its support of Michigan Senate Bill 469. The bill will revive the state’s HTC, which ended in 2011. The bill would provide a tax credit of up to 25 percent of qualified rehabilitation expenses for contributing commercial and residential properties located within a local historic district. Also offered is a supplemental 5 percent credit in addition to the 20 percent federal HTC for income-producing properties. The original program leveraged $71 million in credits to generate more than $1.4 billion in investment in Michigan rehabilitation projects. The program had also leveraged an additional $219 million in federal tax credits and led to the creation of 36,000 jobs.

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A 111-year-old former knitting factory in Syracuse, N.Y., was transformed into 40 apartments thanks to $5.6 million in low-income housing tax credit (LIHTC) equity and $2.7 million in historic tax credit (HTC) equity from M&T Bank. The ribbon cutting for Inner Harbor Lofts was June 20. The 1906 building, previously home to West Brothers Knitting Company, now includes 35 apartments reserved for individuals and families with incomes at or below 60 percent of the area median income (AMI). The remaining five apartments are market rate. The four-story building includes amenities such as a common laundry area, a play area, a community room with computer lab and a fitness room. Additional funding for redevelopment included $225,000 from the Syracuse HOME Investment Partnerships program and incentives from the state Energy Research and Development Authority. KeyBank provided $6.9 million in construction financing. Development costs totaled $10.8 million. 

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The Ohio Development Services Agency awarded $34.9 million in Round 13 Ohio HTCs to 30 applicants planning to rehabilitate 36 historic buildings June 28. Round 18 awards, which went to 13 communities, ranged from $31,250 to $5 million. The projects are expected to leverage approximately $523 million in private investments. 

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Alden Capital Partners announced June 29 a celebration for the completion of Capitol Lofts in Hartford, Conn. The rehabilitation of the 1915 building converted the property into a 112-apartment multifamily property. There are nine one- and 14 two-bedroom LIHTC apartments reserved for households earning up to 50 percent of the AMI. The remaining 89 apartments are at market rate. Amenities include a community game room, movie room and an equipped exercise facility. Financing for the property included $2.2 million in federal LIHTCs provided by the Connecticut Housing Finance Authority. Capitol Lofts also qualified for $6.5 million in federal HTCs. Alden Capital Partners facilitated the syndication of the federal LIHTCs and HTCs through its proprietary investor fund, Alden Capital Partners Tax Credit Fund 18, with Aetna Insurance. Development cost for Capitol Lofts was $36.5 million. Construction was completed in December 2016 and the grand opening for Capitol Lofts was in April.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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