Historic Tax Credits News Briefs – June 2019

Friday, June 7, 2019

Hunt Capital Partners announced April 4 its $13.2 million tax credit investment in the adaptive reuse of Old Hattiesburg High School in Hattiesburg, Miss., into affordable housing. The combined federal low-income housing tax credit (LIHTC) equity, federal HTC and state HTC equity will finance the rehabilitation of Preservation Crossing. The historic school, built in 1911, will be transformed into 74 affordable apartments for seniors 55 and older who earn between 30 and 60 percent of the area median income. Preservation Crossing will maintain its Victorian brick exterior, and once renovated, will provide 56 one- and 18 two-bedroom apartments with modern appliances. Seven units will also have a leasing priority for the disabled. The ground floor will feature 20 apartments as well as a community room, kitchen, dining area, fitness room, business center, laundry room, management office and gazebo. The second and third floors will have 27 apartments each as well as community laundry rooms. The development cost is $15.5 million. Hunt Capital Partners facilitated the federal LIHTC and federal HTC equity through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 30. The firm also facilitated the state HTC equity through its proprietary investor fund with Monarch Private Capital. Mississippi Home Corporation provided $500,000 through its Housing Trust Fund. Key Bank provided a construction loan of $10.3 million, and Financial Institutions Housing Opportunity Pool provided a permanent loan of $1 million. Construction began in late February and is expected to be complete later this year.

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Legislation in Connecticut that would allow easier redevelopment of historic buildings–including those in opportunity zones (OZs)–was narrowed. H.B. 6552 was referred to the Connecticut Joint Committee on Planning and Development. The bill would give qualifying towns authority to determine what is historic and how to protect historic buildings. As introduced, the legislation included all distressed cities in the state, but a revamped version of the bill limits the coverage to OZs in a distressed town with a population of 30,000 or less that has been distressed for at least a decade. The structure must also be vacant for at least 10 years.

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The Missouri Department of Economic Development announced early April the issuance of emergency rules concerning the state historic tax credit (HTC). The rules are effective March 30 through Dec. 31, 2019. There are 11 amendments in the emergency rules, including a provision to consider the amount of projected net fiscal benefit to the state and municipality when evaluating applications, a provision to consider the size and quality of the proposed project when evaluating applications and a description of how multiphase projects will be evaluated. The changes were required after the passage of S.B. 773 last year, which reduced the annual aggregate cap of credits from $140 million to $90 million.

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