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Novogradac Journal of Tax Credits Volume 8 Issue 3

The March 2017 issue of the Novogradac Journal of Tax Credits.

Journal cover March 2017

Articles

Brad Stanhope

Wednesday, March 8, 2017

The Sibley Building in Rochester, N.Y.–once the largest department store between New York City and Chicago–is being reborn as Sibley Square. Boston-based WinnDevelopment is renovating the 1-million-square-foot property with a variety of financial sources, including equity from low-income housing tax credits (LIHTCs), new markets tax credits (NMTCs) and federal and state historic tax credits (HTCs).

Teresa Garcia

Tuesday, March 7, 2017

It could have taken 20 years for Cuyahoga Metropolitan Housing Authority (CMHA) to finance the renovation of Bohn Tower in downtown Cleveland. Instead, it will only take one. Through the U.S. Department of Housing and Urban Development (HUD) Rental Assistance Demonstration (RAD) program, Bohn Tower converted its 266 apartments from public housing to project-based rental assistance and leveraged low-income housing tax credits (LIHTCs) to give the property a complete makeover. “RAD was new to all of us and it was a great learning tool,” said Carolyn Gaiter, CMHA’s chief operating officer. “The small amount of capital funds inserted into this project leveraged many more million dollars in capital improvement.”RenovationThe 22-story Bohn Tower has been a bastion of senior affordable housing in Cleveland for decades. It was named for Ernest J. Bohn, who was known as “the father of public housing” for his role as the founding director of CMHA, the country’s first housing authority in 1933. After 45 years of serving the community, Bohn Tower needed major updates to remain viable in a city that is experiencing gentrification in many of its neighborhoods. “Our central business district is going through a boom and housing there can’t go up fast enough–the vacancy rate is less than 5 percent,” said Michael Shea, CMHA’s director of modernization and development. “This is a great opportunity to maintain our presence in downtown.”Completed in December 2016, Bohn Tower’s renovation

Brad Stanhope

Monday, March 6, 2017

The renovation of the former Buffalo Milk Company building is another example of the rebirth of Buffalo, N.Y., a city that lost half its population in the past 50 years but is experiencing growth thanks to state and federal investment and–in the case of this building–historic tax credit (HTC) and low-income housing tax credit (LIHTC) equity.

Genie Goricki

Friday, March 3, 2017

Question: What changes were made to Community Investment Impact System (CIIS) reporting with respect to jobs data with the release of version 14.0?

Mark Shelburne

Friday, March 3, 2017

The Internal Revenue Service (IRS) issued Revenue Ruling 2016-29 and Notice 2016-77 Dec. 12, 2016. The two have important similarities in addition to being released at the same time, as well as a few noteworthy differences. 


News Briefs

Thursday, March 2, 2017

The U.S. Department of Housing and Urban Development (HUD) announced in the Federal Register Jan. 13 that its assessment tool for public housing agencies (PHAs) to assess fair housing under affirmatively furthering fair housing was reviewed and approved by the Office of Management and Budget (OMB). The announcement says PHAs are not yet required to conduct and submit an assessment. HUD also announced that the OMB approved its request to renew for approval its tool to assess fair housing for local governments that receive Community Development Block Grants, HOME Investment Partnerships Program, Emergency Solutions Grants or Housing Opportunities for Persons with AIDS formula funding from HUD. Both notices are available at www.taxcredithousing.com.

Thursday, March 2, 2017

In early February, the Wisconsin Department of Revenue issued Publication 123, which provides information about the expiration or carryforward of Wisconsin tax incentives for taxable years beginning in 2016. The tax incentives include the community rehabilitation program credit, development zones credits, economic development tax credit, enterprise zone jobs credit, jobs tax credit and supplement to federal historic rehabilitation tax credit (HTC). The tax incentives may be available to corporations, tax-option (S) corporations, partnerships, limited liability companies and sole proprietorships doing business in Wisconsin. The information in the publication reflects the position of the department concerning laws enacted by the Wisconsin Legislature effective Dec. 31, 2016.

Thursday, March 2, 2017

The Ohio Housing Finance Agency (OHFA) announced Jan. 25 revised policy changes for its move-in tenant income certification (TIC) signature dates. Owners can have tenants sign recertification TICs on or up to 120 days after the household’s move-in date. The revised policy affects all developments in initial lease-up and those that have completed their lease-up. Effective Jan. 1, program compliance no longer allows the move-in TIC to be signed in advance. The TIC signature and effective date must be same as the date of move-in. This revised policy does not apply to recertification TICs. A second policy change concerns the utility allowance policy: OHFA will no longer accept consumption-based methodology utility allowance requests. OHFA will allow for a waiver to this policy change for owners who submitted a consumption-based utility allowance request from Jan. 1, 2016, to June 30, 2016, and were approved to use that allowance. Owners of these developments will be able to request a one-time consumption-based utility allowance upon annual renewal. 

Thursday, March 2, 2017

New Mexico H.B. 82 was introduced Jan. 17 by Rep. Matthew McQueen. The bill would reinstate the state solar tax credit and adjust the individual and statewide ceiling. The bill would extend the tax credit that expired at the end of 2016 at 10 percent, gradually phasing down until it sunsets at the end of 2024. The individual project cap would be $9,000. The statewide cap would be $5 million, rather than the previous cap of $2 million for solar thermal systems and $3 million for photovoltaic systems. H.B. 2 is available at www.energytaxcredits.com.

Thursday, March 2, 2017

The Native Nations Institute Feb. 1 released the report, “Access to Capital and Credit in Native Communities” and a supplemental data review. Information included in the documents focused on the status of access to capital and credit in American Indian, Alaska Native and Native Hawaiian communities. Specifically, the data describes access to capital and credit for Native consumers, Native business owners and tribal communities and governments. The two-part study is intended to provide research and analysis in support of improving access to capital and credit in Native communities. The data review concludes that Native-controlled community development entities (CDEs) were underrepresented among both applicants and recipients of new markets tax credit (NMTC) awards. Native Nations Institute points out that the success rate of Native CDEs that applied for the credits was lower than that of non-Native CDEs. The report said that the NMTC program has been less available to native CDFIs than the industry hoped. Both documents are available at www.newmarketscredits.com.

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