Texas HTC to Help Revitalize Real Estate Industry

Novogradac: Journal of Tax Credits

News, Analysis and Commentary On Affordable Housing, Community Development and Renewable Energy Tax Credits

February 2015 • Volume VI • Issue II

By: Bill MacRostie

For the past three decades, Texas has been the poster child for suburban sprawl more than any other state. In metropolitan areas such as Austin, Dallas and Houston, it’s not uncommon to find individuals who have round-trip commutes that top three hours. That’s more than a month spent in the car each year just driving to and from work. It’s easy to see why: As urban buildings fell into disrepair, the prospect of cheaper, new construction lured developers farther and farther away from city centers. And who could blame them? What incentive was there to rehabilitate older, more costly buildings?

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This article first appeared in the February 2015 issue of the Novogradac Journal of Tax Credits. 

© Novogradac & Company LLP 2015 - All Rights Reserved

Notice pursuant to IRS regulations: Any U.S. federal tax advice contained in this article is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties under the Internal Revenue Code; nor is any such advice intended to be used to support the promotion or marketing of a transaction. Any advice expressed in this article is limited to the federal tax issues addressed in it. Additional issues may exist outside the limited scope of any advice provided – any such advice does not consider or provide a conclusion with respect to any additional issues. Taxpayers contemplating undertaking a transaction should seek advice based on their particular circumstances. 

This editorial material is for informational purposes only and should not be construed otherwise. Advice and interpretation regarding property compliance or any other material covered in this article can only be obtained from your tax advisor. For further information visit www.novoco.com.

"We have seen historic tax credit development come roaring back over the last six months...."

While our historic tax credit consulting practice did pretty well through the recession, we have seen historic tax credit development come roaring back over the last six months. We have at least 50 new projects signed just since October 2011, with virtually all of those pursuing state and federal historic tax credits. Predictably, many of these new jobs are in states with strong state historic credit programs, though a good number of projects are in the Chicago area where no state credit program exists. Notably, we've seen a huge increase in the number of hotel projects moving forward, with market-rate residential and office projects close behind.
Over the next month we will be featuring a sampling of our new jobs on Credit Worthy. As always, we look forward to hearing about and working with you on your next project.

WHAT WE’RE WORKING ON

From our Washington, D.C. office:
The 2.1 million square foot Sears warehouse building in Atlanta's Midtown is being converted in a $200 million mixed-use project to restaurants, apartments and office space by Atlanta developer Jamestown Properties. MHA is providing high-level consulting to Jamestown in its historic tax credit application process.

From our Boston office:
Rehabilitation of the 1916 Kenwyn Apartments in Springfield, Massachusetts for continued use as 27 units of affordable rental housing. The $3 million project by HAP Housing, a neighborhood non-profit company, will use federal and state historic tax credits.

From our Chicago office:
Conversion of the 1915 First National Bank – Soo Line Building (pictured above) in downtown Minneapolis, Minnesota for 250 market-rate apartment units. The $61 million project is being undertaken by Village Green Companies using state and federal historic tax credits.