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Historic Tax Credits News Briefs - September 2016

The rehabilitation of the former Lexington, Ky., Courthouse began in late June. The building will be transformed into a commercial center with $9 million in state and federal historic tax credits (HTCs), as well as a $22 million bond approved by the Lexington City Council. Plans for revitalization include a first-floor tasting room for Kentucky bourbon and a second location for local chef Ouita Michel’s farm-to-table Windy Corner restaurant. The building’s third floor will be transformed into event space with seating capacity of about 300. Function rooms on the east and west side will connect by a central hallway. The event space is scheduled to be finished by the end of 2017, with construction of tenant space scheduled for the first quarter of 2018. The entire development is slated for completion in spring 2018.

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On July 4, the Rhode Island Division of Taxation announced the allocation of $5.3 million in HTCs for three renovation projects. A total of $2.5 million in HTCs was allocated for the Union Trust Building, a 12-story Beaux Arts office building built in 1901 in Downcity. The Irons & Russell Building in Providence will receive $2.04 million in HTCs. A total of 57 apartments and ground-floor restaurant space are planned for the historic building. A $757,801 allocation was provided for the Lymansville Mill lofts project in North Providence. The former Lymansville Company Mill will be converted into 101 apartments.

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The construction of Evergreen Lofts in Buffalo, N.Y., was completed July 26. The five-story brick warehouse was converted into 56 apartments for low-income and very low-income individuals and families. There are one-, two- and three-bedroom apartments in 64,000 square feet of space. Of the 56 apartments, 28 are reserved for homeless and chronically ill. Amenities include a community room with an attached kitchen and a private courtyard. Tenants also have access to Evergreen’s supportive services, such as medical, mental health and transportation support. First Niagara Financial Group provided $8.3 million in letter-of-credit financing for the construction of Evergreen Lofts, and provided $10.9 million in HTC and low-income housing tax credit (LIHTC) equity. In addition, the Federal Home Loan Bank of New York provided a $1 million grant, with funding also provided by the Homeless Housing and Assistance Corporation, the New York State Housing Finance Agency, Homes for Working Families, NYS Homes and Community Renewal, NYS Office of Temporary and Disability Assistance and the National Equity Fund. Constructions costs were $16.5 million.

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Boston Capital announced its investment July 26 in the construction of The Germania, a mixed-use apartment community in Milwaukee. The Germania will provide 38 one-bedroom and 52 two-bedroom apartments to families. Forty-four apartments will be reserved as affordable housing, available to families earning 60 percent or less of the area median income (AMI); the remaining 46 will be rented at market rate. The first floor of the building will include 8,500 square feet of commercial space. Community amenities will include a leasing office, a community room with kitchen, a fitness center and tenant storage lockers. The eight-story building was built in 1896 and is listed on the National Register of Historic Places. It will be redeveloped with LIHTC equity and a combined $6.3 million in state and federal HTCs.

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On July 1, the Wisconsin Economic Development Corporation (WEDC) released Revenue Tax Bulletin No. 19, which certified and verified the eligibility for income and franchise tax credits. This included a supplement to the state federal historic rehabilitation credit. The bulletin is available at www.revenue.wi.gov.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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