Our Historic Tax Credit and Historic Preservation Easement Services

Historic Tax Credit (“HTC”) and Historic Preservation Easement (“HPE”) financing provides a substantial economic subsidies to historic projects.  Federal HTCs provide up to 20% of the “qualified rehabilitation expenditures” (“QREs”), depending on pricing of the HTCs, plus any state HTCs and HPEs which are available; however,  for pricing is not as predictable as that of federal HTCs.

Community Reinvestment Associates is a national boutique financial subsidy placement firm.  We profile and target federal and state HTC and HPEs, and other sources of financing whose geographic investment priorities, financial products, and underwriting criteria are a best match to our clients’ needs.

Our legal and accounting backgrounds as well as significant experience in community and economic development enables us to strategically underwrite, structure and close these complex financings on behalf of our clients.

We assist all types of clients, including owners and developers of projects, HTC investors, state HTC and HPE investors, and lenders.

Generally, all of our fees are contingent upon our client receiving HTC and/or HPE financing.

Upon engagement, we promptly provide our clients with the following:

• our HTC/HPE Financing Intake Form;
• a flowchart illustrating the structure of the financing based on available, prospective and alternative sources of the capital stack;
• a budget (including supporting assumptions and calculations) projecting sources and uses of funds during the 5-year HTC compliance period and thereafter;
• our strategy to secure all HTC/HPE financing participants; and
• a proposed timeline through targeted closing date of the HTC/HPE financing.

During our engagement, we will:

• determine whether the 20% HTC program and any applicable state HTC program federal or state historic preservation easements may apply;
• complete national registration nomination applications;
• complete federal (Part 1, Part 2, Part 3 and Appeal, if necessary), and state HTC certification applications;
• work closely with the National Park Service and the applicable State Historic Preservation Office
• determine amount of QREs;
• identify, profile and solicit investors and lenders;
• structure the federal HTC and/or state HTC and HPE financing;
• draft a detailed executive summary of the project and/or operations of the profit or nonprofit Borrower (including detailed analysis, calculations, and supporting materials to support satisfaction of each legal requirement and each underwriting requirement);
• complete all HTC investor and HPE investor intake forms;
• assemble due diligence materials and provide to targeted investors and lenders;
• review and negotiate letters of interest and/or commitment letters provided by investors and lenders;
• schedule and participate on conference calls addressing any questions or comments provided by investors and lenders;
• provide all other reasonable and customary services with respect to each of the foregoing;
• manage the closing and funding;
• provide ongoing asset management, compliance and reporting services; and
• provide such other services as otherwise provided pursuant to our Consulting Agreement.