momjian – Page 4 – New Markets Tax Credit, Historic Tax Credits, and Affordable Housing

July 24, 2013August 27, 2014 by Arthur J. Momjian

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.

July 22, 2013August 27, 2014 by Arthur J. Momjian

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”

July 11, 2013August 27, 2014 by Arthur J. Momjian

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.

July 1, 2013August 27, 2014 by Arthur J. Momjian

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”

June 18, 2013August 27, 2014 by Arthur J. Momjian

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.

May 29, 2013August 27, 2014 by Arthur J. Momjian

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.

May 24, 2013August 27, 2014 by Arthur J. Momjian

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.

May 23, 2013August 27, 2014 by Arthur J. Momjian

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.

May 15, 2013August 27, 2014 by Arthur J. Momjian

CDFI Fund Releases 2012 Allocation Agreement

The form of 2012 New Markets Tax Credit Allocation Agreement has been released by the Community Development Financial Institutions (CDFI) Fund. Notably the form allocation agreement has two significant changes. First, the Allocation Agreement provides the following definition of a Real Estate Qualified Active Low-Income Community Business: “shall mean any QALICB whose predominant business activity (i.e. activity that generates more than 50 percent of the business’ gross income) includes the development (including construction of new facilities and rehabilitation/enhancement of existing facilities), management, or leasing of real estate.” In addition, the form of 2012 Allocation Agreement has the following disclosure requirement. “Disclosure to QALICBs. Each time the Allocatee makes one or more QLICs in the form of a loan(s) to, or investment(s) in, a QALICB, it shall disclose to the QALICB, in a separate stand-alone document, any and all direct and indirect NMTC related transaction costs related to the QLICI(s) (e.g. legal, accounting, compliance), fees and compensation that the Allocatee is assessing the QALICB or otherwise requiring the QALICB to incur prior to, during, and at the conclusion of the seven-year NMTC term.”

April 29, 2013August 27, 2014 by Arthur J. Momjian

Governor Christie to Announce HUD Approval of NJ Sandy Action Plan

It is anticipated that today at a news conference with Governor Christie the Governor will announce HUD’s approval of the New Jersey Sandy CDBG DR Action Plan. This approval by HUD of the first tranche of $1.8 billion will pave the way for additional allocations by HUD which may total over $4 billion for New Jersey from a Congressional allocation of $16 billion in CDBG DR funds for Sandy and other natural disasters. Within the approved action plan there is an allocation of $75 million of funds for Neighborhood and Community Revitalization. This program will be administered through the New Jersey Economic Development Authority. Also the action plan provides for an allocation $100 million of funds for the New Jersey Housing and Mortgage Finance Agency. The New Jersey Housing and Mortgage Finance Agency will use these funds with allocations of Federal low income housing tax credits to fund affordable housing projects in counties affected by Super Storm Sandy.