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Historic Tax Credits News Briefs - November 2017

The Advisory Council on Historic Preservation (ACHP) announced Sept. 20 that it was working with the Federal Emergency Management Agency (FEMA) and with state and tribal historic preservation offices to coordinate disaster recovery efforts for historic properties affected by Hurricanes Harvey and Irma. ACHP also reported that it is working with preservation partners to spur congressional action on supplemental funding and historic tax credits (HTCs) to rehabilitate damaged historic properties. The National Trust for Historic Preservation, in collaboration with the National Conference of State Historic Preservation Officers and the National Association of Tribal Historic Preservation Officers, developed a legislative proposal that includes a proposed two-year preservation grant program that would be funded with at least $150 million from the Historic Preservation Fund. The proposal would also increase the existing HTC for commercial properties for three years from 20 percent to 26 percent for historic properties and from 10 percent to 13 percent for buildings built before 1936. 

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The National Park Service (NPS) approved in late August $2.4 million in federal HTCs for the renovation of the 103-year-old Colonial Theatre in Laconia, N.H. In addition to the federal HTCs, the city of Laconia provided a $1.4 million loan to acquire the property. Construction is expected to begin Jan. 1, 2018, at the earliest, with a cost of $16 million. Renovation work will provide 14 market-rate apartments and four retail spaces. Project organizers are anticipating a $5 million federal new markets tax credit (NMTC) allocation.

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The LN Gross building in Kent, Ohio, will undergo a complete renovation thanks to $1.2 million in federal HTCs announced Sept. 3. Developer DS Architecture also received $900,000 in state HTCs for the renovation of the 25,000-square-foot building, built in 1928. Project costs are expected to be $6.2 million.

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Cherrytree Group LLC announced Sept. 5 the funding of two historic preservation projects in Massachusetts. The Post Office Square in Plymouth and the Greek Revival building in Gardner will undergo a combined $2 million federal and state HTC-equity-funded renovation.  The adaptive reuse of the 100-year-old Plymouth Post Office contains luxury apartments and more than a dozen new commercial and retail spaces. The building has been listed on the National Register of Historic Places since 1986. The 10,000-square-foot Greek Revival building was converted into 12 studio apartments that provide supportive housing for individuals who have completed rehabilitation treatment programs, are in recovery or are transitioning into independent living.

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The completion of Dominium’s renovation of the Hiawatha Corridor into Millworks Lofts happened in September. Dominium transformed the Minneapolis millwork company, established in 1916, into 78 rental apartment lofts. Amenities include a clubroom, rooftop deck and fitness room/yoga room. Apartments are available to residents earning no more than 60 percent of the area median income. Dominium restored approximately 30,000 square feet of a wooden shed, two-thirds of which will be used as covered parking, bicycle storage and lockers for residents. The property, placed on the National Register of Historic Places, was  acquired and restored with federal HTCs and low-income housing tax credits.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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