Novogradac Journal of Tax Credits Volume 9 Issue 2
The February 2018 issue of the Novogradac Journal of Tax Credits
CrescentCare, a health care organization that began providing services to individuals living with AIDS in New Orleans decades ago, is building a 65,000-square-foot medical campus thanks to successful partnerships, a dynamic vision and equity from new markets tax credits (NMTCs).
It looked like curtains for the Robinson Grand Performing Arts Center in Clarksburg, W.Va., but a combination of historic tax credit (HTC) and new markets tax credit (NMTC) equity has the historic theater ready for a second act.
A common misconception about historic tax credit (HTC) rehabilitation projects is that the state historic preservation office (SHPO) and National Park Service (NPS) only have purview over exterior work, when in reality, interior design is a critical component in the review process, which may lead to approval or denial.
When Hurricane Maria slammed Puerto Rico in September 2017, the island’s entire electrical grid was knocked out. Three months later, about half of the island’s 3.4 million residents remained without power, meaning no school, no reliable source of clean water, no lights.
Legendary detective Sherlock Holmes said it best in Sir Arthur Conan Doyle’s novel “The Adventure of the Copper Beeches.”
“Data! Data! Data! I can’t make bricks without clay.”
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The Community Development Financial Institutions (CDFI) Fund announced Dec. 14, 2017, that 120 organizations submitted applications requesting nearly $540 million in funding for the fiscal year 2017 (FY17) round of the Capital Magnet Fund program. Capital Magnet Fund awards are granted to CDFIs and qualified nonprofit housing organizations to finance affordable housing activities, related economic development activities and community service facilities. There is $119.5 million available for awards in the FY17 round and awards are expected in early 2018.
The L.N. Gross Building in Kent, Ohio, opened Jan. 11 after undergoing a $6 million rehabilitation. The 1928 building will house Richard Fleischman|DS Architecture and On Us Aqua LLC. Approximately $2.1 million in state and federal grants and historic tax credits (HTCs) were provided for the rehabilitation of the 20,000-square-foot building.
A federal judge ruled Dec. 23, 2017, that the U.S. Department of Housing and Urban Development (HUD) must implement a rule to help low-income families find housing Jan. 1, 2018. HUD officials announced in August they would delay the rule for two years, but several civil rights groups sued the Trump administration over the delay. Chief Judge Beryl A. Howell found that HUD did not provide fair reasoning to delay the rule and that the delay was made arbitrarily. The rule requires public housing authorities in 24 metropolitan areas to use small area fair market rents to calculate Section 8 payment standards. Under previous law, rents for entire metropolitan areas are used to calculate the formulas. Howell found that HUD did not have the proper authority to delay the rule and that the stay was made arbitrarily.
The Ohio Housing Finance Agency (OHFA) issued a program compliance update Dec. 1, 2017, reminding low-income housing tax credit (LIHTC) property owners that 2017 Annual Owner Certifications and tenant data are due March 1. LIHTC extended-use properties have completed 15 years of the compliance period and are required to submit tenant data on all rental activity for the reporting year. If any new properties or lease-up phases are qualified during the 2017 reporting period, the owner is required to submit the tenant data and annual certification. If the property was sold during the reporting period, the owner of record at the end of the reporting period is responsible for annual reporting. Owners are required to submit the 2017 certifications and tenant data via OHFA’s online reporting system, DevCo Online.
The Illinois Department of Revenue provided tax credit guidance Dec. 20, 2017, to residents in 18 disaster-declared counties impacted by 2017 floods. The Natural Disaster Income Tax Credit is available to businesses and individuals who sustained flood damage to qualified real property in an Illinois-declared disaster area and were issued certification from their township assessor or chief county assessment officer. Residents may be eligible to claim up to $750. Eligible counties include Alexander, Carroll, Clinton, Cook, Henry, Jackson, Jo Daviess, Kane, Lake, Lee, Marshall, McHenry, Ogle, Rock Island, Stephenson, Union, Whiteside and Woodford.