First of all, Ted Jones is an economist who presents his economic forecast to the clients of NorthStar Title every January. Secondly, Doug Forbes is my brother who lives outside of Philadelphia. My brother had not been to Cleveland for 8 years when he came in for a short visit after Christmas. I took my
Mission Possible: Combining HUD Construction Financing with Historic Tax Credits
Combining HUD-insured multifamily construction financing (like Section 221(d)(4) loans) with historic tax credits (“HTC”) can seem like an impossible feat given their respective mazes of rules and requirements. Notwithstanding, each are valuable sources of capital for developing multifamily projects, and, if you can manage through those mazes, HUD financing and HTCs can be successfully combined.
Rehabilitation Historic Tax Credit
On December 30, 2013, the IRS issued Revenue Procedure 2014-12, setting forth a safe harbor for federal historic rehabilitation tax credit (HTC) transactions. Investors have been skittish about HTC deals ever since the 2012 federal appellate court decision in the Historic Boardwalk Hall case, which disallowed the allocation of HTCs to an investor. The