2170 gilbert avenue, suite 100 cincinnati, ohio 45206 tel 513.559.0048 fax 513.559.0840
Post on 27-Mar-2015
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2170 Gilbert Avenue, Suite 100 • Cincinnati, Ohio 45206
Tel 513.559.0048 • Fax 513.559.0840
LayeringHistoric Credits with LIHTC9/25/2008
• 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
Pros
• 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.
Cons
• 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
Selection Process
• 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?
Need
Academy Flats
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