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Novogradac Journal of Tax Credits Volume 7 Issue 8

The August 2016 issue of the Novogradac Journal of Tax Credits.

 Journal cover August 2016


Mark O’Meara

Friday, August 12, 2016

Pennsylvania has the fourth-highest veteran population in the United States at just more than 939,000; behind only California (1.85 million), Texas (1.68 million) and Florida (1.58 million), according to the U.S. Department of Veterans Affairs. To help veterans struggling with homelessness, Housing And Neighborhood Development Service (HANDS), a nonprofit housing owner, developer and manager, built Freedom Square and redeveloped the Goodrich House in Erie, Pa. 

Teresa Garcia

Thursday, August 11, 2016

Cincinnati’s historic Over-the-Rhine neighborhood made national headlines over the past few years because of its dramatic transformation from blight to renewal. Vacant and underused buildings were repurposed into condominiums and upscale boutiques. Hundreds of millions of dollars were poured into redevelopment, but until recently, investments were concentrated in the southern half of the neighborhood. The northern half was largely untouched by redevelopment efforts, but a recent project by local developer Model Group hopes to change that. “This is a neighborhood that our company has been working in for years,” said Jason Chamlee, developer at Model Group. “This area of Over-the-Rhine has, to date, received very little real estate investment. Market Square will be absolutely transformational.”

Forrest D. Milder

Wednesday, August 10, 2016

Safe harbors are an important structuring tool, but there’s no safe harbor for solar. Over the years, the Internal Revenue Service (IRS) has issued the equipment leasing safe harbor (most recently, Revenue Procedure 2001-28), the wind production tax credit (PTC) safe harbor (Rev. Proc. 2007-65), the historic tax credit safe harbor (Rev. Proc. 2014-16), the begun construction safe harbor (most recently, Notice 2016-31), and others. 

John M. Tess

Tuesday, August 9, 2016

Some developers look upon the historic tax credit (HTC) process as straightforward paperwork: Completing and submitting the Part 2 application; receiving approval from the National Park Service (NPS); and moving forward with the approved project, no longer in need of an HTC consultant. 

Jana Cohen Barbe and Robert E. Richards

Monday, August 8, 2016

Bankruptcy law affords debtors the opportunity to reduce the balance owed on a loan and to restructure their indebtedness over the objections of certain creditors. This is called a “cram down.” Not long ago, this right was invoked in connection with the bankruptcy of an entity that owns a qualified low-income housing tax credit (LIHTC) development in Phoenix. A recent appellate level decision, First Southern National Bank v. Sunnyslope Housing Limited Partners (In the Matter of Sunnyslope Housing Limited Partnership), issued April 21, 2016, by the Ninth Circuit Court, however, reversed confirmation of the cram-down plan opposed by the current first lien lender related to the 150-unit affordable housing apartment complex known as “Sunnyslope.” 

News Briefs

Friday, August 12, 2016

Sen. Edward Markey, D-Mass., introduced legislation June 8 to extend the renewable energy investment tax credit (ITC) for offshore wind through the end of 2025. The Offshore Wind Act (S. 3036) would extend the 30 percent ITC for offshore developments for six additional years to encourage offshore development. At the end of 2015, the ITC was extended through 2019 with a gradual phase-down.

Friday, August 12, 2016

The Office of the Comptroller of the Currency (OCC) published the latest edition of its Community Developments Investments electronic newsletter June 8, “Financing Health Centers: Supporting Community Wellness.” This edition of the newsletter provides an in-depth look at bank financing of federally funded health centers that serve economically disadvantaged communities, including how banks are financing the construction, renovation and expansion of them. These centers provide medical and supportive services to persons of all ages, regardless of their ability to pay. Community Developments Investments is available on the OCC’s website.

Thursday, August 11, 2016

The National Park Service (NPS) released updated guidance June 22 on seismic rehabilitation of historic buildings. “Preservation Briefs 41: The Seismic Rehabilitation of Historic Buildings,” provides information on how to do seismic work that can protect lives and historic structures. The NPS warned that retrofitting historic buildings to survive earthquakes could damage or destroy the historic features that make them significant. However, historic buildings are especially vulnerable to earthquakes because so many were built before seismic codes were adopted. The update expands sections on topics such as achieving seismic retrofit and preservation, evaluating significant historic features and spaces, and developing a seismic rehabilitation plan. “Preservation Briefs 41: The Seismic Rehabilitation of Historic Buildings” is the first update in nearly 20 years.

Wednesday, August 10, 2016

On June 6, the Obama administration named nine Promise Zones, adding them to the list of 13 others. Promise Zones are high poverty areas in select urban, rural and tribal communities that will receive priority access to federal investments that further their strategic plans, federal staff on the ground to help them navigate federal resources, and five full-time AmeriCorps VISTA members to recruit and manage volunteers and strengthen the capacity of the Promise Zone initiatives. The communities now included as Promise Zones are Atlanta; Nashville, Tenn.; Evansville, Ind.; South Los Angeles, Calif.; San Diego, Calif.; Southwest Florida Regional Planning Commission; Spokane Tribe of Indians, Wash.; Turtle Mountain Band of Chippewa Indians in Rolette County, N.D.; and Roosevelt Roads, Puerto Rico.

Tuesday, August 9, 2016

The California Tax Credit Allocation Committee (TCAC) released information June 21 regarding the 2015 U.S. Department of Housing and Urban Development (HUD) tenant demographic data collection. In a memo to low-income housing tax credit (LIHTC)  property owners and managers, TCAC said in 2016 it will continue to contract with Spectrum Enterprises, a compliance service provider, in its efforts  to comply with its tenant demographic data collection requirements. LIHTC property owners and managers were allowed to start submitting the 2015 tenant data to Spectrum July 5. Property owners and managers must submit data for households within a LIHTC property as of Dec. 31, 2015, to Spectrum by Aug. 31.

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