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Historic Tax Credit Advisory Services

Urban Trust provides tax credit, development and strategic advisory services to owners and developers of historic properties at all stages of the real estate development process:

  • Historic Rehab Tax Credit Equity Placement
  • Deal Structuring and Financial Advisory Services
  • Pre-Development Feasibility Analysis
  • New Markets Tax Credit Equity
  • Fee Development and Project Development Services
  • Rehabilitation of Nonprofit and Government Owned Historic Properties using the Section 168 (h) “Election” Process.

What is Historic Tax Credit Equity?

The Congressional Tax Reform Act of 1976 introduced economic incentives for the rehabilitation of America’s historic buildings. The historic investment tax credit (HTC) is a one-time 20 percent federal income tax credit, the amount of which is based on virtually all hard and soft construction costs of rehabilitating buildings certified as historic by the federal government and located in a local ordinance or national register historic district. Buildings may be residential, commercial or industrial. (See Section 251 of the Tax Reform Act of 1986, and Internal Revenue Code Sections 46, 47 and 48.) Many Fortune 500 corporations and financial institutions offset their federal income tax liability on a “dollar for dollar” basis through the exchange of an equity investment for the tax credits generated by the rehabilitation of qualified (certified) historic structures. Historic structures eligible for the credit can include nonprofit owned historic properties if leased to a for-profit entity for income producing purposes and for a specified lease term of at least 50 years. Historic tax credits are generated by the “substantial rehabilitation” of qualified income producing commercial buildings. To qualify for the tax credit the owner of the building must forecast an economically viable project and the rehab design must be approved by state historic preservation offices and the National Park Service. Many states also now participate in state tax credit programs that mirror the federal program.

New Markets Tax Credit Advisory Services

Urban Trust provides New Markets tax credit origination and advisory services to owners of developments and businesses qualifying for the federal New Markets program. Urban Trust is Managing Member of a CDE, SouthEast Community Investment Fund, LLC which is certified to fund loans required to develop businesses and real estate (Community Development) in low income Communities.

Project Development Services

As a highly experienced firm in its specialized area of historic property development and finance Urban Trust provides innovative and state-of-the-art deal structuring solutions for historic property owners. Urban Trust’s project development advisory services include:

  • Transaction Structuring
  • Feasibility Analysis
  • Fee Development
  • Design and Construction Estimates
  • Financial Projections Preparation
  • Debt and Equity Procurement
  • Public Funding Source identification
  • Project Marketing and Leasing
  • Project Management
  • Asset Management and Reporting
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