Duane Morris represented Lancaster Pennsylvania based CDFI Community First Fund in the deployment of its first award of Federal New Markets Tax Credit authority by the CDFI Fund. Community First Fund deployed New Markets Tax Credit allocation for the expansion of a Charter School in York, Pennsylvania. PNC Bank provided the debt and tax credit equity for the York Charter School expansion.
CDFI Fund Launches New Information Mapping System
The Community Development Financial Institutions Fund (CDFI Fund) launched the next version of its CDFI Information Mapping System (CIMS3). The web-based tool allows organizations interested in applying for certification as a Community Development Financial Institution (CDFI) or Community Development Entity (CDE), or in applying to one of the CDFI Fund’s award programs, to visually plot their eligible service areas and investments. CIMS3 is intended to improve the past mapping capabilities the CDFI Fund offered.It also for the first time allows the general public to access eligibility data for each of the CDFI Fund’s programs. CIMS3 will also allow prospective and certified CDFIs and CDEs enhanced capacities to identify and assess target markets, to quickly and accurately determine the eligibility of specific sites for possible investments, and to easily create maps and geographic data analyses.
Duane Morris Closes $36,000,000 Acquisition and Rehabilitation Transaction
A team of Duane Morris lawyers lead by Art Momjian represented Federation Housing, Inc. in the acquisition and rehabilitation of the Samuel Tabas Apartments located in Philadelphia, Pennsylvania. The $36,000,000 transaction is structured with tax-exempt bonds and 4% Federal Low income housing tax credits. The tax-exempt bonds were issued in two series through the Philadelphia Authority for industrial Development. The Federal low income housing tax credits were syndicated by the National Equity Fund to TD Bank.
Art Momjian to Speak at NMTC Conference
Duane Morris partner and Affordable Housing and Community Development Chair Art Momjian will speak at a New Markets Tax Credit Forum for Community Leaders, Developers, Commercial Lenders and Community Development Professionals on December 10th. The Forum is sponsored by Community First Fund, the Leigh Valley Economic Development Corporation and The Reinvestment Fund and will be held at the ArtsQuest Center in Bethlehem, Pennsylvania. Art Momjian will discuss the legal aspects of Federal New Markets Tax Credit transactions.
Duane Morris Project Featured on Cover of Novogradac Journal of Tax Credits
The Novogradac Journal of Tax Credits featured on the cover of the September issue the historic rehabilitation of the Palmer Seminary in Wynnewood, Pennsylvania. Art Momjian, a partner and Chair of the Affordable Housing and Community Development practice group of Duane Morris LLP, represented the developer Cross Properties in the structuring of the historic tax credit transaction. The Palmer Seminary building was originally opened in 1919 as the Green Hill Farms and Apartments. Twenty years later theology students moved into the building when it became the Eastern Baptist Theology Seminary. After the historic renovation the building will consist of 112 rental apartments and 14,000 square feet of medical office space.
Art Momjian to Speak at NMTC Conference
Duane Morris partner and Affordable Housing and Community Development Practice chair Art Momjian will be speak at a New Markets Tax Credit Conference sponsored by the Community First Fund. The Conference will be held Thursday November 14th in the Offices of Community First Fund located at 30 West Orange Street, Lancaster, Pennsylvania. The conference will start at 8:00 am and Art Momjian will discuss Legal Perspectives of the New Markets Tax Credit Program. For further information regarding the Community First Fund New Markets Tax Credit Conference contact Art Momjian at ajmomjian@duanemorris.com.
Historic Tax Credit Industry Waits for Boardwalk Guidance from the IRS
In the aftermath of the Third Circuit Court of Appeals reversal of the lower Tax Court decision of the Historic Boardwalk case while industrial investments in the Federal historic tax credits continue the Historic Tax Credit industry has been waiting from promised guidance by the Internal Revenue Service (the “IRS”) in the form of a Revenue Procedure. In this interim, transactions are being structured to address concerns of the IRS voiced in its appeal of Historic Boardwalk and some of the principles contained in Revenue Procedure 2007-65. On October 19th 2007 the IRS issued Revenue Procedure 2007-65 (the “Wind Rev. Proc. establishing a “safe harbor” for the “flip” structures for partners and partnership that own and produce electricity from qualified wind energy facilities under Section 45 of the Internal Revenue Code. The energy tax credit and the federal rehabilitation tax credit are investment tax credits under the Code and the Revenue Procedure to be issued by the IRS may mirror may of the provisions contained in Wind Rev. Proc. It is hoped that the Historic Tax Credit Revenue Procedure will be issued by the IRS by the end of the year.
Duane Morris Helps Sandy Victims
Nicole Friant, who serves as pro bono counsel for Duane Morris, announced a commitment by the firm to help victims of Super Storm Sandy. Duane Morris has formed a Sandy Relief legal clinic with Volunteer Lawyers for Justice in Atlantic City. The clinic is staffed by Duane Morris lawyers who volunteer to provide legal assistance to victims of Super Storm Sandy who are still working to overcome the aftermath of Sandy and rebuild their lives. The clinic is located at St. Andrew By the Sea Lutheran Church, 936 Baltic Avenue, Atlantic City, NJ 08401.
Deadline Extended for NYC Build it Back
Richard Dyer a partner in the New York City of Duane Morris reports that the deadline to register for the NYC Build it Back extended to Oct 31st. This program is intended to help Sandy victims repair, rebuild, get reimbursed for expenses incurred or sell their homes. The program is funded from the $645 million from Federal disaster recovery funds approved by Congress. To date there have been over 20,000 registrations to participate in the program. See the City’s press release at http://www.nyc.gov/html/recovery/downloads/pdf/nyc-build-it-back-deadline-extension.pdf.
New Jersey Enacts Economic Opportunity Act of 2013
The New Jersey Economic Opportunity Act of 2013 (the “Act”) was signed into law on September 18, 2013. The Act is intended to promote job creation and the redevelopment of urban centers, suburban office parks and areas impacted by Hurricane Sandy by expanding state programs that offer tax incentives. The Act phases out three existing programs and expands two existing programs: the Grow New Jersey Assistance (“Grow NJ”) Program and the Economic Redevelopment and Growth (“ERG”) Program. The Grow NJ Program provides incentives and tax credits for businesses that invest and create jobs in New Jersey. Under the Act the Grow NJ Program provides bonus tax credits for mega projects and projects located in Urban Transit Hubs and the Garden State Growth Zone, and lowers minimum capital investments and job creation requirements for 8 counties including Camden and Atlantic counties. Continue reading “New Jersey Enacts Economic Opportunity Act of 2013”