“The Historic Buildings Piece of the Affordable Housing Puzzle”National Historic Tax Credit Conference, Chicago

SEPTEMBER 2008

Eaton Place, Wichita, KS

Community Restoration and Revitalization Act H.R. 1043, S. 584

- Work in tandem with LIHTC

- Eliminate basis reduction

- Help smaller projects

- Enhance 10% credit

- Enhance non-profit use

- Target disinvested areas

Housing Economic Recovery Act of 2008

- AMT Exemption

- New QAP requirements

- Non-profit lease improvements

Smith Lofts, Providence, RICourtesy of Keen Development Corporation

Changes to state Qualified Allocation Plans

• Must consider energy efficiency and the historic character of the project

• Permits discretionary ‘boost’ of up to 30% the LIHTC available to a project.

Midtown Exchange, Minneapolis, MN

Current Treatment Of Historic Preservation in State QAPs

•Approximately 21 states currently award points based on preservation criteria

•The average weight is about 5%

•Point determination varies from state to state

Mercy Housing, Savannah, GA

Best Practices and Model Language

• Points for projects with historic character.

• Clearly define ‘historic character’ and include adherence to rehab standards

• Require documentation verifying historic character

• Include language to permit historic projects to get the discretionary 30 % basis boost

Indiana Cotton Mill, Cannelton, IN

General Information and Next Steps

• State HFA’s not in compliance with the new requirements must revise their 2009 QAP’s

• Advocacy Opportunity

-Provide comments

-Develop state strategyYale Building, Chicago, IL