IRS Publishes Safe Harbor for Historic Tax Credit Investors

In an effort to stabilize the Federal Historic Tax Credit industry in the aftermath of the Third Circuit Decision in Historic Boardwalk Hall LLC , the Internal Revenue Service (the “IRS”) published Revenue Procedure 2014-12 (the “HTC Rev Proc”) which outlines a safe harbor for investors (an “Investor”) in Federal Historic Tax Credits (the “Tax Credit”). An Investor receives the Tax Credit through an ownership interest in a partnership which owns and develops a historic building or through the election of the partnership to pass the Tax Credit to a master tenant owned by the Investor. Continue reading “IRS Publishes Safe Harbor for Historic Tax Credit Investors”

HUD Announces Additional $1.5 Billion in Sandy CDBG Funds

One year after Hurricane Sandy devastated coastal communities in the Northeast, the U.S. Department of Housing and Urban Development (HUD) announced an allocation of a combined $5.1 billion through a second round of recovery funds to five states and New York City. Provided through HUD’s Communty Development Block Grant (“CDBG”) Program, these CDBG recovery funds will assist impacted communities to meet remaining housing, economic development and infrastructure needs. In this second Sandy allocation, grantees will be required to identify unmet needs for housing, economic development and infrastructure and may use this allocation to address those unmet needs. Grantees will be required to incorporate a risk assessment in their planning efforts to ensure long term resilience. The Second HUD CDBG Sandy Allocation has been made to the following: New York City – $1,447,000,000; New Jersey – $1,463,000,000; New York State – $2,097,000; Connecticut – $66,000,000; Maryland – $20,000,000; and Rhode Island – $16,000,000.

Duane Morris Closes NMTC Transaction for Community First Fund

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

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.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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