The New York City Office of Duane Morris will host a Super Storm Sandy Conference and Reception on September 25th. 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 a wide range of financing tools available for development in the aftermath of Super Storm Sandy which include Sandy HUD CDBG grants, Federal New Markets Tax Credits, equity, debt, and EB-5 financing. 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
CDFI Fund Announces Intent to Award $8.5 billion in NMTC Allocation
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released the Notice of Allocation Availability (NOAA), which officially opens the next round of competition under the New Markets Tax Credit Program (NMTC Program). The NOAA combines the calendar year (CY) 2013 and CY 2014 rounds, making $8.5 billion ($3.5 billion authorized by Congress for CY 2013 and $5 billion requested in the President’s 2014 Budget) in tax credit authority available, pending Congressional authorization.
The CDFI Fund seeks to combine the CY 2013 and CY 2014 rounds in order to achieve cost and efficiency savings to the government in addition to realigning the program calendar. The combined round would also prevent an anticipated deficit of available NMTCs and would allow the CDFI Fund to make additional allocation awards.
At this time, the CDFI Fund anticipates opening the CY 2015 round of the NMTC Program in the summer of 2014 with award decisions in the spring of 2015.
NYC EDC issues RFEI for Staten Island Site
Richard Dyer of the New York City office of Duane Morris reports that the New York City Economic Development Corporation (EDC) and the Port Authority of New York and New Jersey (Port Authority) have issued a Request for Expressions of Interest (RFEI) for re-development at the Staten Island Industrial Park known as the Teleport. The RFEI will seek ideas from developers to expand or transform the site, or to utilize the site more efficiently. Currently, approximately half of the Teleport is used as a data center and office park, while the remaining half, another 40 acres, is available for development.
A public notice regarding the opportunity was posted at the EDC’s website here. The notice summarized some background and elements of the project as follows:
Continue reading “NYC EDC issues RFEI for Staten Island Site”
Duane Morris closes Historic Tax Credit Transaction
The Duane Morris team of Art Momjian, of the Philadelphia office, Chris Winter, of the Wilmington office, and Marc Kushner, of the New York office, represented Ci 6E Lancaster Avenue Associates LP in connection with the partnership’s $40,000,000 historic renovation of the Palmer Seminary located in Wynnewood Pennsylvania. The historic buildings of the Palmer Seminary will be renovated into apartments and medical office space. The Duane Morris team represented the partnership in the syndication of Federal Historic Tax credit generated by the transaction.
NYC Economic Development Corp. to award Sandy CDBG Grants
Duane Morris New York City partner Richard Dyer reports that the New York City economic Development Corp. is requesting proposals from qualified firms or individuals to establish programs to “catalyze significant long-term economic growth” in five areas impacted by Hurricane Sandy. See here.
The RFP process is described by the EDC as:
Continue reading “NYC Economic Development Corp. to award Sandy CDBG Grants”
U.S. Supreme Court Grants Certiorari in Township of Mt. Holly Case
The United States Supreme Court granted certiorari in Third Circuit Court of Appeals decision in the Township of Mount Holly, NJ vs. Mount Holly Gardens Citizens in Action. The genesis of the case is a proposed redevelopment plan by Mt. Holly Township, New Jersey that would eliminate existing homes in a neighborhood occupied by low-income residents and replace these homes with more expensive housing. The residents of this neighborhood organized and filed an action against the Township alleging violations of various anti-discrimination laws. The Third Circuit held that the adverse impact test under the Fair Housing Act, rather than a discriminatory intent test, should be applied and remanded the case back to the District Court for a determination of whether the proposed redevelopment plan of Mt. Holly Township violated the Fair Housing Act. The Township appealed to the U.S. Supreme Court and the high court will review the decision of the Third Circuit Court of Appeals.
Hurricane Sandy Recovery Bonds
As previously reported, Rep. Bill Pascrell (D-NJ-09) led a bipartisan push for introduction of the Hurricane Sandy Tax Relief Act of 2013 (H.R. 2137). This bipartisan bill included a total of 28 co-sponsors. In addition to the tax credit allocations detailed earlier, the legislation also authorizes creation of Hurricane Sandy Recovery Bonds for the impacted area. Hurricane Sandy Recovery Bonds will be a new state-by-state private activity bond allocation, including $9.2 billion for New York, $9.2 billion for New Jersey and $3.2 billion for Connecticut. The bond allocation will provide financing for the rebuilding of certain housing and critical infrastructure including: water and sewage systems, docks and wharfs, commuter facilities and energy production facilities. The bill has been referred to the House Committee on Ways and Means for review.
Michael Pehur is Development Finance Consulting Director at Duane Morris Government Strategies (DMGS), a consulting firm created from the former entities Duane Morris Government Affairs (DMGA) and GSP Consulting. DMGS supports the growth of organizations, companies, communities, and economies through a suite of innovative government and business consulting services.
U. S. Supreme Court denies Cert. on the Historic Boardwalk Hall Case
The Historic Boardwalk Hall Case in which the Internal Revenue Service challenged the traditional structure used by tax credit investors in the syndication of Federal Historic Tax Credits came to an uncerimonial end with the denial by the United State Supreme Cout of the taxpayer’s writ of certiorari to the high court. As reported in an earlier entry on this blog, the Service has announced its intention to provide guidance, most likely in the form of a Revenue Procedure, which will provide a safe harbor for investors in Federal Historic Tax Credits. It is anticipated that the safe harbor will reflect the position of the Service in the Historic Boardwalk Hall Case and an investor must demonstrate that it is a partner for Federal income tax purposes with downside risk and upside potential as a partner.
IRS to Issue Historic Tax Credit Safe Harbor
In the aftermath of the Third Circuit’s decision in Historic Boardwalk Hall LLC v. Commissioner, the IRS has announced its intention to provide guidance for tax structures where developers work with investors to use Federal Historic Tax Credits to further the development of historic structures. While the Service acknowledges that Congress supports the rehabilitation of historic buildings, the position of the Service is that partnerships with investors must conform to the Service’s historic requirements for tax partnerships. It is anticipated that the guidance from the IRS to come in a revenue procedure that provides a safe harbor similar to what Rev. Proc. 2007-65, 2007-45 offers for the section 45 wind energy production tax credit.. If this is the case, we can expect the Service to require that the investors have real upside and downside as a partner which was the Service’s position articulated in the Historic Boardwalk Hall LLC case.
Bipartisan Coalition Proposes Hurricane Sandy Tax Releif Act of 2013
U.S. Rep. Bill Pascrell, Jr. (D-NJ-09) lead a bipartisan coalition including Reps. Joseph Crowley (D-NY), Rodney Frelinghuysen (R-NJ), Michael Grimm (R-NY), John Larson (D-CT), Frank LoBiondo (R-NJ), Charles Rangel (D-NY), Tom Reed (R-NY) and Carolyn McCarthy (D-NY) in introducing legislation to provide tax relief to the victims of the devastating storm that caused widespread destruction throughout the Northeast. The Hurricane Sandy Tax Relief Act of 2013 is aimed at providing tax relief for victims of Hurricane Sandy in areas designated as Federal Disaster Areas by the President. The bipartisan coalition will propose supplemental new market tax credit allocation authority for community development entities serving Hurricane Sandy disaster areas and increased low-incme housing tax credit allocation authority for delcared disaster areas.