2170 Gilbert Avenue, Suite 100 • Cincinnati, Ohio 45206

Tel 513.559.0048 • Fax 513.559.0840

LayeringHistoric Credits with LIHTC9/25/2008

• Currently Historic Equity pricing higher than LIHTC

• Historic basis is deducted from the LIHTC basis

• Layering helps offset the cost of the Section 106 findings

• High rehab standards for historic encourage affordable housing development that is indistinguishable from market rate

Pros

• Occasional conflicts between Historic preservation and the QAP.– ADA, Universal Design, Features, etc…

• Risk of upfront Part 1 application costs being lost if the LIHTC application is not funded.

• In some cases, the cost of historic compliance is greater than the incremental construction cost.

• Windows: High energy costs vs. the aesthetics of storm windows.

Cons

• Cincinnati and Northern Kentucky have several historic districts, many of which are plagued by poverty and neglect

• Selection tends to be driven by neighborhood revitalization rather than individual buildings

Selection Process

• Is there demand?• Does it contribute to a larger revitalization

effort?• Does the operating budget work?• Can enough money be raised to cover

renovation and operational expenses?– Am I eligible for historic credits? (Fed or State)– Am I competitive enough to move forward with

LIHTC Part 1 app?– Are other sources of gap financing available?

Need

Academy Flats