Novogradac Journal of Tax Credits Volume 10 Issue 6
Abridged version of the June 2019 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Civic Enterprise Development LLC is bringing a multitenant, premium food production facility to the Belmont Cragin neighborhood of Chicago–Amped Kitchens Chicago.
A series of historic brownstone apartments in the South End of Boston will be preserved and rehabilitated by the same developer that renovated it 42 years ago.
Paperbox Lofts Breaks Ground in Salt Lake City Opportunity Zone
Approaching mid-year 2019, the new markets tax credit (NMTC) landscape is in a stable, yet strategic position.
When the Treasury Department released its second tranche of proposed guidance for the opportunity zones (OZ) incentive April 17, the investment community took notice.
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The Treasury Department’s second-quarter update to the 2018-2019 Priority Guidance Plan was released April 5. The update includes plans to provide guidance for the low-income housing tax credit average-income test, the use of historic tax credit for disaster relief, regulations to clarify certain rules for the new markets tax credit (NMTC) and guidance on private-activity bonds for affordable housing. The Priority Guidance Plan covers the period from July 1, 2018, through June 30, 2019, and the update includes projects published or released in the quarter ending Dec. 31, 2018. Of the 239 guidance projects in the 2018-2019 Priority Guidance Plan, 44 were completed before the publication of the update, including the first tranche of guidance on the opportunity zones incentive.
Rep. Mike Doyle, D-Pa., and two colleagues introduced legislation April 4 to expand the renewable energy investment tax credit (ITC) to included energy storage technology. The Energy Storage Tax Incentive and Deployment Act of 2019 would be effective for property placed in service after Dec. 31, 2018, and would subject storage technology to the phasedown of the ITC. This is the third straight session of Congress in which the bill has been introduced.
Hunt Capital Partners announced April 4 its $13.2 million tax credit investment in the adaptive reuse of Old Hattiesburg High School in Hattiesburg, Miss., into affordable housing. The combined federal low-income housing tax credit (LIHTC) equity, federal HTC and state HTC equity will finance the rehabilitation of Preservation Crossing. The historic school, built in 1911, will be transformed into 74 affordable apartments for seniors 55 and older who earn between 30 and 60 percent of the area median income. Preservation Crossing will maintain its Victorian brick exterior, and once renovated, will provide 56 one- and 18 two-bedroom apartments with modern appliances. Seven units will also have a leasing priority for the disabled. The ground floor will feature 20 apartments as well as a community room, kitchen, dining area, fitness room, business center, laundry room, management office and gazebo. The second and third floors will have 27 apartments each as well as community laundry rooms. The development cost is $15.5 million. Hunt Capital Partners facilitated the federal LIHTC and federal HTC equity through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 30. The firm also facilitated the state HTC equity through its proprietary investor fund with Monarch Private Capital. Mississippi Home Corporation provided $500,000 through its Housing Trust Fund. Key Bank provided a construction loan of $10.3 million, and Financial Institutions Housing Opportunity Pool provided a permanent loan of $1 million. Construction began in late February and is expected to be complete later this year.
The U.S. Department of Housing and Urban Development (HUD) published a notice in the Federal Register March 14 revising the fiscal year 2019 fair market rents (FMRs) for 10 areas, based on data provided to HUD. The FMRs apply to the Housing Choice Voucher program and the Moderate Rehabilitation Single-Room Occupancy program. The revised FMRs will take effect April 13. The 10 areas include four in Oregon, four in California and two in New England.
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) announced April 17 updates to its low-income housing tax credit compliance monitoring procedures manual. Among the changes, NJHMFA added several forms as exhibits for convenience. In addition, the extended-use period monitoring procedures for properties in Chapter 6 were updated. The newest version is available at www.taxcredithousing.com.