Two Downtown Dayton Projects Face Tough Competition, Coronavirus Challenges
Two downtown Dayton projects, seeking millions of dollars in state historic tax credits could be in trouble as they face heavy competition for the incentives from projects across the state as their request comes during one of the worst financial periods in the history of the hotel industry due to the coronavirus pandemic. Applicants have requested nearly $79M in tax credits, which far exceeds the less than $27M the state currently has to award.
Regions Closes $107M LIHTC Fund
RAH Corporate Partners Fund 56 will invest in 15 affordable housing properties financed through the LIHTC program. The developments are in 10 states—AK, CO, GA, LA, MS, NM, NY, NC, OK, and TX. Eleven properties are being built for families, and four are being built for seniors. Nine developments will set aside units to provide for veterans, survivors of domestic violence, and those requiring health and social services.
Clemson Development: University Uses Coronavirus Time to Build; Newry Gets Revitalization
An old textile mill near Lake Keowee is getting a $60M upgrade. The property will be renovated and new buildings will be constructed to create nearly 200 apartments, a grocery store, restaurant, event space and an expanded post office. The property will receive federal and state tax breaks and sits in the middle of an Opportunity Zone.
IRS Extends Due Dates For Making Investments For New Markets Tax Credit
Due to COVID-19, the IRS released Notice 2020-49, which extends certain time criteria related to the New Markets Tax Credit (NMTC) program. Under the notice, any due dates for making investments, making reinvestments and expending amounts for the construction of real property that would have fallen between April 1, 2020, and December 31, 2020, are extended until December 31, 2020.
LIHTC Deals Face Increased Scrutiny Amid COVID-19
Low-income housing tax credit (LIHTC) deals continue to move forward, but investors are being very cautious as they weigh potential new risks brought on by the COVID-19 crisis and the economic downturn. Developers and others should not be overly aggressive in their assumptions. They should go back to industry standards in terms of vacancy assumptions, reserves, and guarantee requirements, with a focus on operating reserves.
Ohio Awards $31M in Housing Tax Credits
The Ohio Housing Finance Agency (OHFA) has awarded more than $31M in federal low-income housing tax credits to 37 developments as part of its 2020 allocation round. The affordable housing developments will help create or preserve 2,002 apartments for families, seniors, and people with disabilities.
Sign on to Help Communities Recover by Extending, Expanding the New Markets Tax Credit
The New Markets Tax Credit (NMTC) Coalition is once again organizing a sign-on letter in support of an NMTC extension. This letter also calls for additional funds to communities to recover from the COVID crisis. Please sign your organization onto this letter in support of additional NMTCs to address the COVID-19 crisis.
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