Historic Rehabilitation Tax Credits

Syndication/Historic Rehabilitation Tax Credits

The Historic Rehabilitation Tax Credit (“HTC”) is an effective and cost-efficient financing tool for community revitalization. Since 1976, this innovative program remains a critical stimulant to real estate investment and preservation. Through the HTC program, project sponsors together with their investment partners repurpose historic structures, binging renewed life to theaters, factories, hotels, mill complexes, armories, and department stores.

Blank Rome’s attorneys have participated meaningfully in the HTC program from its inception, from structuring and closing the first transactions by layering multiple tax credits to speaking industry-wide regarding associated tax and real estate issues. Our HTC team has extensive experience in all aspects of HTC transactions, including preparing organizational, real estate, equity, and debt documents, and we communicate seamlessly with accountants and other professionals to implement the right structure to achieve the tax and business objectives of project sponsors, syndicators, investors, and investment funds.

Our HTC team:

  • represents developers, nonprofit organizations, syndicators, and investors in connection with the development, rehabilitation, and syndication of hundreds of HTC projects throughout the United States;
  • negotiates, structures, documents, and closes HTC transactions, often transactions that involve multiple federal and/or state tax credits, such as low-income housing tax credits, renewable energy tax credits, and new markets tax credits; and
  • interprets and advises on compliance rules related to state and federal legislative and administrative requirements.

Select Representative Engagements

  • Represented a project sponsor in a $30 million HTC real estate transaction to redevelop a blighted, environmentally impacted community outside Canton, Ohio, into a community development and urban renewal project.
  • Represented a new markets credit investor, HTC investor, and CDE in the $20 million state and federal historic tax credit and new markets tax credit financing of the historic Town Theatre in Baltimore, Maryland.
  • Represented a project sponsor in the $53 million rehabilitation of the David Broderick Tower, the $86 million rehabilitation of the David Whitney Building, and the $35 million rehabilitation of the historic Griswold Lofts, all in Detroit, Michigan, and qualifying for historic and new markets tax credits.
  • Represented a project sponsor of the historic tax credit and new markets tax credit-financed rehabilitation of 5716 Michigan Avenue in Detroit, Michigan, to serve as a primary healthcare facility and office space for several nonprofit social service providers.

Experienced Attorneys, Recognized in Their Fields

Members of Blank Rome’s HTC team are frequently invited to write and speak on tax and real estate issues at conferences such as the Novogradac Annual New Markets Tax Credit Conferences and CohnReznick’s Annual New Markets Tax Credit Summit and Conferences. Several attorneys serve as adjunct professors or lecturers at the Graduate Tax Program (LL.M.) of Georgetown University Law Center, George Washington University Law School, and the Real Estate Institute at Temple University. Further, members of Blank Rome’s tax credit team have published several books and articles on tax credits, including Tax Credits: Historic Boardwalk Guidance, Recommended Practices discussing recommended practices post issuance of Revenue Procedure 2014-12, 2014-3 I.R.B. 415 and “Joint Ventures Involving Tax-Exempt Organizations.”