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Summer 2009 Update: MacRostie Historic Advisors
"Re-Rehabbing" Affordable Housing with Historic Tax CreditsThe recently-completed School House Project in Boston's Roxbury neighborhood demonstrates how historic tax credits can be used multiple times to provide equity for the redevelopment of historic buildings. The project, which involved the acquisition and rehabilitation of three previously-rehabbed historic buildings for continued use as housing, combined state and federal historic rehabilitation tax credits with a variety of federal, state, and municipal incentive programs to pool the $33 million needed to successfully complete the work.
In 2007, a joint venture formed by E.A. Fish Associates (EAF) and Madison Park Development Corporation (MPDC) purchased a portfolio of four scattered site buildings that included two historic schools, a turn-of-the-century factory building, and a non-historic building. The three historic buildings-the Dillaway School, the William Lloyd Garrison School, and the Berger Building-were individually listed on the National Register of Historic Places and had been converted to affordable senior and family housing in 1980 by a former owner utilizing federal historic tax credits. At the time of the EAF/MPDC acquisition, the buildings were in bankruptcy and had received little maintenance during the twenty years since the initial rehabilitation. Even though the buildings had used historic credits before, the new project work exceeded EAF/MPDC's adjusted basis in the buildings, thus qualifying for a new round of credits.
The scope of work for the project was not significantly altered by the owner's decision to utilize historic tax credits. Because the buildings had been previously adapted for a residential program, the new rehabilitation work was primarily limited to installing new systems, updating kitchens and baths, and painting and carpeting the units. Exterior work included minor masonry repairs and the installation of new energy-efficient windows that are more historically-accurate than the 1980 replacement units. MacRostie Historic Advisors worked closely with the architect, contractor, and window supplier to ensure that the scope of work complied with the Secretary of the Interior's Standards for Rehabilitation. Our staff also prepared and coordinated the federal and state historic tax credit applications and the project received final certification for the state and federal historic tax credits in June 2009.
Overall, the state and federal historic tax credits provided over $5 million in equity for this $33 million project. Other equity included state and federal low income housing tax credits as well as permanent loans from the state housing agency and the city. The completed project revitalized historic buildings that had deteriorated after twenty years of neglect and provides 88 new units of subsidized rental housing for the Roxbury community.
What We’re Working On:
Recent and Upcoming Speaking Engagements:
On July 16-17, Albert Rex will be speaking at CDFA's Fundamentals of Economic Development Finance Course in Washington, D.C. Albert will be providing an overview of federal and state historic tax credits.
This course is a nationally acclaimed educational offering from CDFA's Development Finance Training Institute. The Fundamentals Course is the foundation for all of CDFA's educational offerings and will help you understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
Fifth Annual J. Timothy Anderson Awards
MacRostie Historic Advisors LLC is proud to have been the historic tax credit consultant for several Timmy Award-winning projects in past years, including the West Baden Springs Hotel in West Baden Springs, IN, Harmony Mills in Cahoes, NY, the Clipper Mill in Baltimore, MD, and the Liberty Hotel in Boston, MA. We encourage our friends and clients in the historic tax credit world to check out these great awards. Click Here To Learn More About the Timmy Awards.
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