Historic Tax Credits News Briefs – February 2019

Thursday, February 7, 2019

Rep. Dwight Evans, D-Pa., introduced a bill Jan. 7 to allow rehabilitation expenses on older public school buildings to qualify for the federal historic tax credit (HTC). H.R. 158 would remove the prior-use restriction from the HTC that makes it impossible for local governments to collaborate with private developers on school renovations. Similar legislation was proposed in 2012. The bill is available at www.historictaxcredits.com.

***

KeyBank Community Development Lending & Investment announced $21.9 million in funding to Home Leasing LLC for the historic preservation and creation of affordable housing in Holley, N.Y. KeyBank provided $6.8 million in low-income housing tax credit equity, $5.1 million in HTC equity and a $9.9 million construction loan for Holley Gardens in Cleveland. The adaptive reuse of the former Holley High School property will provide apartment homes for seniors. Once completed, there will be 41 studio, one- and two-bedroom multifamily apartment homes that are available at or below 30 percent, 50 percent, 60 percent and 80 percent area median. Of the 41 apartments, seven will be available for households where at least one member is a person with a physical disability. In addition, there is 6,080 square feet of planned commercial space leased to the village of Holley. Additional funding includes a $3.1 million Housing Trust Fund loan, a $1 million Community Investment Fund loan and New York State Empire State Development has provided a $1 million RestoreNY grant.

***

The West Virginia State Tax Department amended Code of State Rules, Title 110, Series 21C, Method of Claiming the Qualified Rehabilitated Buildings Investment Credit. Amendments were effective Dec. 31, 2018. Amendments were made to provide definitions for an “operating agreement” and for “taxpayer” for purposes of the credit, as well as to provide that a partner or a member of an entity that receives a credit may apply its share of the credit against its tax own liability. Other amendments include to provide that the sale, assignment or transfer of a certified historic structure, absent the sale, assignment or transfer of the credit, does not entitle the purchaser, assignee or transferee of the structure to claim the credit that was certified for the structure; no two parties may claim the credit for the same tax year;  and guidance concerning the method and documentation necessary for a taxpayer to demonstrate good standing with state, local, municipal and county taxing authorities.

***

The Ohio Development Services Agency awarded $36 million in Ohio historic preservation tax credits Dec. 12, 2018, for the rehabilitation of 28 buildings throughout the state. The buildings, part of 26 developments, are expected to leverage approximately $250 million in private investments. The funding was part of the 21st round of tax credits.

Journal Category: