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2170 Gilbert Avenue, Suite 100 • Cincinnati, Ohio 45206 Tel 513.559.0048 • Fax 513.559.0840. Layering Historic Credits with LIHTC 9/25/2008. Pros. Currently Historic Equity pricing higher than LIHTC Historic basis is deducted from the LIHTC basis
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2170 Gilbert Avenue, Suite 100 • Cincinnati, Ohio 45206 Tel 513.559.0048 • Fax 513.559.0840
Pros • Currently Historic Equity pricing higher than LIHTC • Historic basis is deducted from the LIHTC basis • Layering helps offset the cost of the Section 106 findings • High rehab standards for historic encourage affordable housing development that is indistinguishable from market rate
Cons • Occasional conflicts between Historic preservation and the QAP. • ADA, Universal Design, Features, etc… • Risk of upfront Part 1 application costs being lost if the LIHTC application is not funded. • In some cases, the cost of historic compliance is greater than the incremental construction cost. • Windows: High energy costs vs. the aesthetics of storm windows.
Selection Process • Cincinnati and Northern Kentucky have several historic districts, many of which are plagued by poverty and neglect • Selection tends to be driven by neighborhood revitalization rather than individual buildings
Need • Is there demand? • Does it contribute to a larger revitalization effort? • Does the operating budget work? • Can enough money be raised to cover renovation and operational expenses? • Am I eligible for historic credits? (Fed or State) • Am I competitive enough to move forward with LIHTC Part 1 app? • Are other sources of gap financing available?