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HTC Projects with USDA Financing

  • 1.  HTC Projects with USDA Financing

    Posted 02-19-2019 14:55
    Good afternoon,

    I'm looking for any projects where financing or grants from the USDA were combined with the use of federal historic tax credits (HTCs).  Based on information received, it appears that USDA financing precludes the use of HTCs because of the non-traditional deal structures involved.  This is a recent development that has come to light on a project with an approved Part 2.  While both federal agencies review to the Standards, the bar is much higher and the details scrutinized far more critically in a NPS/HTC project than in a USDA/Section 106 review.  After the expenses incurred getting through the Part 2 approval, I find it ridiculous that a another federal agency can derail the use of HTCs when the Standards have been met.  Any suggestions would be appreciated.

    Thanks,


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    Heather Rudge
    Historic Preservation Group
    Cleveland OH
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  • 2.  RE: HTC Projects with USDA Financing

    Ambassador
    Posted 03-01-2019 11:34
    Heather,

    While the federal tax credit is often paired with HUD funding, I cannot recall a project paired with USDA grants from the years I worked in the federal tax credit program (though as part of the review team at SHPO, I wasn't always privy to the financial structures of the projects). I do recall applicants discussing the need to choose between one program or the other because of conflicting requirements and sometimes they were able to change their financing structure to make both work.

    Most of the USDA grants I am aware of are awarded to local government or nonprofit organizations, so depending on what grant is being used it might help to find a project involving those entities to see how the financing is structured. I've often seen tax credit financing structures that incorporate nonprofit organizations, but local governments would more typically be involved in other ways.

    I know with increased IRS scrutiny of tax credit structures everything has become more complex and I don't know what, if any, ramifications the most recent tax reform had on that aspect of the program. I hope you find some answers to help make the project happen!

    Barbara

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    Barbara Howard
    Stonebridge Learning, LLC
    Minneapolis MN
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