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Novogradac Journal of Tax Credits Volume 1 Issue 7

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

Journal cover July 2010


Michael J. Novogradac

Thursday, July 1, 2010

There are two big winners in a new markets tax credit (NMTC) equity-financed development in Santa Fe, N.M.: the families who bought affordable, energy-efficient homes and the rest of the neighborhood.“We want to strengthen the neighborhood and that’s what’s really cool,” said Mike Loftin, CEO at Homewise Inc., a New Mexico-based organization devoted to affordable home ownership. “People are embracing this. They can live here, settle down and make it better.”Homewise received a $5 million NMTC allocation from the Housing Partnership Network (HPN) to rehabilitate an area in a severely distressed census tract in Santa Fe by building and selling about 20 single-family homes as part of the El Camino Crossing development. Other financing sources are being used to develop El Camino Crossing into a mixed-use residential and commercial community that will transform a vacant parcel in a disinvested neighborhood into 64 homes and 23,000 square feet of commercial space.The results are impressive in an area with unemployment at more than double the national average and median family income that’s less than 40 percent of the region’s median income.Finding NMTCsThe El Camino Crossing land was purchased and gained civic approval for housing before the post-Great Recession housing crunch. That’s when Homewise purchased the bank-owned property–and got creative.“For me and a lot of people, the conventional wisdom was you can’t use new markets tax credits for this,” said Loftin. “But Housing

Jennifer Dockery

Thursday, July 1, 2010

Barnett Tower is a symbol of both the old days and the future for Jacksonville, Fla.The former headquarters of the largest bank in Florida sat vacant for decades, but now is part of a renovation funded partly by equity from new markets tax credits (NMTCs) and historic tax credits (HTCs). The mixed-use property–with residential, commercial and educational space–will host its first tenants by the end of the year.Once finished, Barnett Tower will have 46,166 square feet of commercial and office space on the first seven floors and 108 multifamily apartments–22 designated as affordable–on floors 8-18.“I feel personally privileged to do work on these buildings,” said Steve Atkins, principal and managing director of SouthEast Group, which is partnering with The Molasky Group of Companies as developer. “When these get done, they will really be trophy projects.”While Barnett Tower is under construction, SouthEast Group is also renovating the across-the-street Laura Street Trio buildings into a boutique hotel with retail space–also using NMTCs and HTCs.[scald=169391:embedded_image_100 {"link":"","linkTarget":"_blank"}]Image: Courtesy of SouthEast Development Group LLCThis artist’s rendering shows how Barnett Tower will look after its renovation into a mixed-use property funded by equity from new markets tax credits and historic tax credits.HistoryThe Barnett National Bank Building, built in 1926 as the bank’s headquarters, was the tallest building in

James R. Kroger

Thursday, July 1, 2010

This article is a follow up to the article, “Understanding the 2010 Income Limits,” in the June 2010 Novogradac Journal of Tax Credits. Last month we described examples of the project-based approach versus the county-based approach for determining rent and income limits for low-income housing tax credit (LIHTC) and tax-exempt bond projects. Those examples showed how the project-based approach can result in counties with several rent and income limits. This poses technical challenges in determining which rent and income limits are correct for a project and practical challenges in having different rent and income limits for projects in the same area. This article will explore more issues related to the project-based approach.

Jennifer Hill

Thursday, July 1, 2010

Beginning in October, the U.S. Department of Housing and Urban Development (HUD) will operate a small area fair market rent (FMR) demonstration project for its Section 8 Housing Choice Voucher (HCV) program in selected metropolitan areas, the agency said in June. HUD said it is now able for the first time to maintain and update an FMR system for smaller geographic areas. The agency is conducting the demonstration project and requesting comments to determine the best way to implement a nationwide small area FMR system for metropolitan areas.

John Leith-Tetrault

Thursday, July 1, 2010

There is something to be said for getting it right the first time. Sometimes it takes so long to do something once, you hate to have to go back and do it again. And there is no guarantee of a second chance. But in the tax credit world, change comes slowly and seems to require focused, repetitive efforts before advocates get what they are after.

News Briefs

Monday, November 23, 2015

The Community Development Financial Institutions (CDFI) Fund received a total of 250 applications in the 2010 round of the New Markets Tax Credit (NMTC) program, indicating that demand for NMTC allocations remains strong. The applications requested an aggregate total of more than $23.4 billion in NMTC allocation authority...

Thursday, July 1, 2010

The U.S. Department of Housing and Urban Development (HUD) issued instructions to property owners who wish to request that HUD check their individual buildings for funding eligibility under the Department of Energy’s (DOE’s) Weatherization Assistance Program...

Thursday, July 1, 2010

U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan released details of HUD’s Strategic Plan to guide the agency through fiscal years 2010 to 2015. The plan’s five goals are to strengthen the housing market to bolster the economy and protect consumers;...

Thursday, July 1, 2010

The Federal Housing Finance Agency (FHFA) released a report to Congress detailing the agency’s findings from the 2009 examinations of government sponsored entities (GSEs) Fannie Mae, Freddie Mac, the 12 Federal Home Loan Banks (FHLBs) and the FHLB Office of Finance...

Thursday, July 1, 2010

The New Jersey Assembly’s Environment and Solid Waste Committee voted in favor of A. 1851, the Historic Property Reinvestment Act, which would establish a state tax credit for rehabilitating a historic property. A. 1851 would allow for a 25 percent credit toward the taxpayer’s rehabilitation costs...

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