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Novogradac Journal of Tax Credits Volume 1 Issue 11

The November 2010 issue of the Novogradac Journal of Tax Credits.

Journal cover November 2010

Articles

Michael J. Novogradac

Monday, November 1, 2010

A church-and-school campus in New Orleans that never reopened after Hurricane Katrina is now home to the Southern Rep Theatre, a school and a co-working space, thanks to equity from historic tax credits (HTCs) and new markets tax credits (NMTCs).St. Rose de Lima Church became the Rose Collaborative when it opened in October.“Adaptive reuse, if it’s done right, can be wonderful,” said Shawn Kennedy, president of Rose Community Development Corporation (Rose CDC), a partner in the development. “I think in some regards, this is the overall idea of what we wanted. In some regards, it’s better.”“Church buildings are going empty across the country and it’s extremely hard to find alternative uses,” said Nancy Wagner-Hislip, chief investment officer of the Reinvestment Fund, which provided key financing for the development. “It was an opportunity to redevelop that building that was a blight–it was a pretty blight, but a blight–on the neighborhood and give the theater group a permanent home.”It is a story that starts long before Katrina hit New Orleans.Early 20th Century to AcquisitionSt. Rose de Lima Church was built in 1915. Over many decades, the campus served as a spiritual center for the community, as well as the home of a school–which had buildings constructed in 1925 and 1938.The property remained vital, but changing demographics and dropping school attendance had it struggling by 2005. Then Katrina hit, damaging the city–although the property, on high ground, avoided dramatic

Jennifer Hill

Monday, November 1, 2010

Tax credit syndicators and lenders, concerned about what they see as potentially unsustainable equity prices, put the low-income housing tax credit (LIHTC) equity market’s current state into historical context and discussed the effect of new investors on the market during sessions at the Novogradac & Company affordable housing tax credit conference in San Francisco, Calif. on September 30. Novogradac & Company partners George Littlejohn and Rob Thesman each moderated a panel that explored the twists and turns that the equity market has taken during the past few years and mapped out their predictions for 2011.

Jennifer Hill

Monday, November 1, 2010

As a general rule, community colleges don’t offer residence halls. But that doesn’t mean they don’t want to help their students find housing, or that students aren’t interested in living near campus. So when Buffalo, N.Y.-based developer Jake Schneider heard Erie Community College (ECC) president Jack Quinn speak about the school’s rapid growth and corresponding housing demand at a brown bag lunch, he hatched a plan to convert an old Alling & Cory paper warehouse to the Lofts at 136, chic student apartments in downtown Buffalo.

John Leith-Tetrault

Monday, November 1, 2010

Any tax credit syndicator interested in economic survival during the great recession has been working overtime to identify new investors. Speaking from personal experience, nothing is more frustrating than trying to convince a company CFO to try something new when revenue is down and cash is tight. Arranging the first phone conversation isn’t so hard. But getting past that first phone call to a face-to-face meeting without the help of a powerful door opener can be a daunting task. I have found that having 20 of these conversations going at once is essential because 19 of 20 conversations will go nowhere. Getting to a “no” can often take months. Getting to a “yes” can take a year or more.

H. Blair Kincer

Monday, November 1, 2010

Question: What are the current costs and related market trends that affect the valuation of fair market value for renewable energy assets?


News Briefs

Monday, November 1, 2010

As its final action before adjourning for midterm elections, Congress passed a continuing resolution (CR) that will continue funding all federal government agencies, including the U.S. Department of Housing and Urban Development, at fiscal year (FY) 2010 levels.

Monday, November 1, 2010

Owners of multifamily rental developments that receive funding, including tax credits, from the state of Texas must report the number of vacant units to the Texas Department of Housing and Community Affairs (TDHCA) each quarter.

Monday, November 1, 2010

The U.S. Department of Housing and Urban Development (HUD) published final fiscal year 2011 fair market rents (FMRs) in October.

Monday, November 1, 2010

The New Hampshire Community Development Finance Authority (CDFA) awarded more than $4 million to a dozen organizations to further their affordable housing and economic development programs.

Monday, November 1, 2010

The Community Development Financial Institutions (CDFI) Fund released preliminary data on new markets tax credit (NMTC) projects financed through the end of fiscal year (FY) 2009.

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