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”
Duane Morris Closes NMTC Targeted Population Transaction
Art Momjian of the Philadelphia Office, Chris Winter of the Wilmington Office, and Marc Kushner of the New York office represented Zagis USA, LLC in the closing of a Federal New Markets Tax Credit facility for the expansion of a cotton spinning facility in Louisiana. The expansion of the existing cotton spinning facility created additional employment in a non-metropolitant area of Louisiana. The financing qualified under the Federal New Markets Tax Credit targeted population regulations and was structured by Advantage Capital Partners.
Duane Morris NYC Hosts Sandy Conference
On September 25th a distinguished panel of speakers which included Jonathan Gouveia of the New York City Economic Development Corporation, Margaret Anadu of the urban investment group of Goldman Sachs, George Olsen of the New York City EB-5 Regional Center, and Andy Rachlin of The Reinvestment Fund made presentation regarding the financial tools available for Sandy-affected areas before a capacity audience at the New York City Offices of Duane Morris. Duane Morris partner and Super Storm Sandy practice Chair Art Momjian and Marie Mascherin of the Community Loan Fund of New Jersey, Inc. moderated a lively discussion of the resources available for development and resiliency in Sandy-affected areas. The panel also provided examples of the funding sources partnering by contributing New Markets Tax Credits, HUD CDBG grants, and EB-5 financing for the development of projects in Sandy-affected areas.
Duane Morris Sandy Conference on September 25th
On September 25th the New York City Office of Duane Morris will host a Super Storm Sandy Conference and Reception in its New York City Office. The focus of the Conference is “From Disaster to Recovery: Financing Tools for Development after Super Storm Sandy”. The panelists are Jonathan Gouveia, Senior Vice-President of the Strategic Investment Group of the New York City Economic Development Corporation, Margaret Anadu, Vice President of the Urban Investment Group of Goldman Sachs, George L. Olsen, Managing Principal of the New York City EB-5 Regional Center, and Andrew Rachlin, Vice President and Market Leader of The Reinvestment Fund. The speakers on the panel will discuss the distribution of $4 billion of HUD CDBG monies by the New York City Economic Development Corporation, the allocation by the Treasury of $8.5 billion of New Markets Tax Credit allocation next Spring, and the availability of the Federal EB-5 program for the development of Sandy related projects. The Conference will be from 5 pm to 6 pm followed by a cocktail reception from 6:00 pm to 7:30. For further information and to register contact Art Momjian at ajmomjian@duanemorris.com.
Duane Morris Forms Team for Acquisition Rehabs with Bonds and Tax Credits
Duane Morris partners Bob Archie and Art Momjian are working with Bob Jacobs of RCJ Consulting, LLC, Roy Diamond of Diamond and Associates, Eugene (“Geno”) Schiavo of Kitchen and Associates, and Pierce Keating of Keating Construction Company as a result of HUD authorizing the prepayment and refinancing of Section 202 Direct Loan projects have teamed together to help owners of seasoned Section 202 apartment buildings perform substantial renovations of their properties through the use of a financing structure known as a “lease/acquisition rehab” tax-exempt bond and tax credit structure. In this structure, the existing owner “leases” the apartment building to a technically unrelated limited partnership which leases and the renovates the apartment building through the use of tax-exempt bonds proceeds, 4% federal low-income housing tax credit equity proceeds, and owner’s purchase money mortgage financing. At least 50% of the prepaid rent or acquisition cost along with the renovation of the apartment building must be financed with volume cap tax exempt bonds, in order for the project to qualify for 4% Federal low income housing tax credits to provide equity for the project. Through the “low-income housing tax lease/acquisition rehab” structure, the owner may complete a substantial renovation of its project while reducing the amount of its existing debt service and receiving a developer fee for its services. To discuss whether your project would qualify for the “lease/acquisition rehab” structure contact Bob Archie at (215) 979-1915 or RLArchie@duanemorris.com or Art Momjian at (215) 979-1521 or ajmomjian@duanemorris.com
New York City Announces Four Sandy Waterfront Design Semi-Finalists
Richard Dyer a partner in the New York City Office of Duane Morris reports that on July 18th, four semi-finalist teams were announced by the City of New York including Ennead Architects (formerly Polshek Partners) of New York, Lateral Office of Toronto, Seeding Office of London, and White Arkitekler of London to City sponsored competition to determine how to best design and build on the City’s waterfront areas exposed to future storms.
Continue reading “New York City Announces Four Sandy Waterfront Design Semi-Finalists”