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Historic Tax Credits News Briefs - December 2013

On Oct. 10, Wisconsin Gov. Scott Walker, announced his support of a bill that would double the rate of Wisconsin’s historic preservation tax credit from 10 percent to 20 percent. Qualifications to receive the 20 percent credit would include qualified rehabilitation expenditures of at least $50,000 and a placed-in-service date after Dec. 31, 2012 and before Jan. 1, 2023. At press time, the bill had passed the Assembly and Senate and was awaiting the governor’s signature. The bills is available at www.historictaxcredits.com.

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The National Trust for Historic Preservation’s Preservation Green Lab and the Urban Land Institute released a report entitled, “Partnership for Building Reuse, Learning from Los Angeles” in October. The report covers the goals of the initiative, barriers to reuse and the results from Los Angeles’s pilot project. The report provides recommendations to promote building reuse in Los Angeles, including modernizing the city’s zoning regulations and promoting the economic, social and environmental benefits of recycling buildings. The report also includes a section on promoting new and existing incentives, including rehabilitation tax credits and supporting the establishment of a state rehabilitation tax credit that can be combined with the federal rehabilitation tax credit. The report indicates that a state rehabilitation tax credit would help spur additional reuse projects and that it would help overcome the costs and higher risks associated with these reuse projects. Partnership for Building Reuse is designed to enhance opportunities for building reuse in major U.S. cities by bringing together community groups, real estate developers and civic leaders together. Los Angeles was the pilot project and the program will expand to four additional cities in 2013 and 2014. The report can be viewed at www.historictaxcredits.com.

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The Advisory Council on Historic Preservation (ACHP) published a report called, “Measuring Economic Impacts of Historic Preservation: A Report to the Advisory Council on Historic Preservation” in September. The goals of the report, conducted by PlaceEconomics, are to understand what has been learned to date about the relationship between historic preservation and economics, to learn what specific information would be most valuable to preservation advocates and how that information would be used and to receive recommendations on what should be measured and by whom. Researchers performed an extensive literature review of preservation and economic links, interviewed stakeholders, held an international symposium to learn recommendations from scholars and practitioners in the field, filed interim briefings and prepared a report. The report concluded by stating the next steps to be conducted, including identifying and reaching an agreement with other parties to conduct research and data collection, to create a long-term research, evaluation and reporting plan, establish baselines for each of the recommended indicators and work with the identified parties to systemize data collection.

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Sen. Tom Coburn, R-Okla., in late September released “PARKED! How Congress’ Misplaced Priorities are Trashing Our National Treasures.” The report provided statistics on the lack of taxpayer dollars flowing into maintenance of the nation’s parks. Coburn argues that Congress has misused more than $2.6 billion in annual National Park Service Funding. This includes Congress underfunding the maintenance portion of the budget by $256 million in fiscal year 2013. Coburn does not call for any changes to be made to the historic tax credit (HTC), but he does question the value of the historic resources that the credit has benefited, citing baseball stadiums, beergardens and breweries. The report can be viewed at www.historictaxcredits.com.

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On Oct. 10, The Over-the-Rhine Foundation, a nonprofit organization that works to revitalize Cincinnati’s Over-the-Rhine neighborhood, received an $8,000 Pipeline Pilot Initiative grant from the Ohio Historic Preservation Office and the Ohio Development Services Agency. The grant will go to the research and preparation of the federal application for the nomination of 13 buildings in the Over-the-Rhine neighborhood to the National Register of Historic Places. Kevin Pape, president of the Over-the-Rhine Foundation, said that the buildings not being listed on the register creates a barrier to redevelopment.

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The National Trust Community Investment Corporation is hiring a project manager. The project manager will perform acquisition activities for the National Trust Community Investment Fund. Main responsibilities include creating and reviewing financial models, calculating investor returns, performing detailed guarantor analyses, identifying key underwriting risks and mitigations, and working with outside counsel to close transactions and lead/participate in weekly closing calls. Duties will include underwriting prospective investments, preparing investment committee write-ups and presenting these memos to the board investment committee, closing transactions and providing a handoff memo to asset management. Interested applicants should have strong financial analysis and spreadsheet skills, at least five years of senior level experience in complex urban subsidized housing and commercial real estate finance, prior experience working with governmental agencies, nonprofit groups and for-profit developers, expertise in legal, tax and accounting aspects of historic and NMTCs, the master tenant ownership structure and the HTC certification process preferred, excellent writing skills, demonstrated ability to work well in a team setting and willingness to travel and work an unconventional schedule. Interested parties should email [email protected].

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On Oct. 30, Dominium announced the closing of financing for the redevelopment of A-Mill Artist Lofts, located in Minneapolis, Minn. Originally a flour mill, the property will now have 251 artist loft apartments specifically designed to suit the needs of artists. Amenities will include studios for yoga/Pilates, dance, pottery, play/performance, sounds, paint and clay, along with a kiln room, tool shop/frame room and multiple gallery spaces. U.S. Bank is providing a $118 million financing package to support the $150 million renovation plan. The package includes a construction loan, a letter of credit and a purchase of the Minnesota HTCs generated by the redevelopment. Affordable Housing Partners Inc. will provide approximately $75 million in equity. Nearly $26 million in permanent financing is being provided by Cornerstone Real Estate Advisors. Renovations are expected to be completed by the fall of 2015.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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