Historic Tax Credits News Briefs – October 2019

Monday, October 7, 2019

In a general information letter Aug. 9, the Kentucky Department of Revenue clarified to whom a nonprofit can transfer the state historic tax credit (HTC). The letter stated that any exempt entity that had earned a HTC could not transfer or give the credit to a newly formed single member limited liability company (LLC), unless the LLC is subject to the financial institution franchise tax. Any nonprofit that earned qualified rehabilitation expenses may only transfer or assign the credit to a different entity if that entity pays bank franchise tax pursuant to KRS 136.505. 

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The Massachusetts Historical Commission awarded Eagle Mill Redevelopment LLC $400,000 in HTCs Aug. 15, pushes Eagle Mill closer to financing a planned $60 million development in Lee, Mass. The developers plan to restore a run-down mill and turn it into a mixed-use complex that includes affordable and market-rate housing, a marketplace, commercial space and an offsite hotel. Construction is set to begin in 2020 and will take about two years. The development was already awarded $6 million in federal HTCs and developers hope to ultimately match that with $6 million in state HTCs. 

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Woodward Opera House in Mt. Vernon, Ohio, held its official grand opening Feb 9 after nearly two decades of restoration work. Pat Crow, project manager for Woodward Development Corporation, started working on the building in 1998. The opera house was built in the 1850s and was added to the National Register of Historic Places in 1975, but the building was in disrepair. The community combined new markets tax credit equity and HTC equity to push the development to completion. Woodward Development Corporation received a combination of HTC and new market tax credit equity, which helped supplement the estimated $21 million that went into the rehabilitation. 

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Alexander Co. received its final financing Aug. 21 and will now move forward with renovations to turn Old Main, a historic building in Milwaukee on Soldiers Home grounds, into veterans’ housing. Old Main was built in 1869 and originally housed Civil War veterans and other generations of veterans before closing in 1989. Budget constraints for the Department of Veterans Affairs in recent years has it difficult to maintain the building. The property also received $19.6 million in low-income housing tax credit equity to go with $13.5 million from state and HTC equity. Nonprofit lender Milwaukee Economic Development Corp., approved a $547,000 loan that completed the financing package for Alexander Co. 

Journal Category: 
Historic Tax Credits
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