Historic Renovation/Reuse

ICCF_Exterior-004Many non profits struggle to attain campaign goals, while a golden opportunity to ensure success goes unnoticed.  In certain situations, non profits can and should approach historic renovation and reuse projects in the entrepreneurial way most developers do.  All too often non profit organizations considering the purchase and renovation of older buildings fail to consider the impact that tax credits can have on the realization of their vision.  Although attaining tax credits can add significant steps to a capital project, the results are often well worth the trouble.

Since non profits can not directly use tax credits, appropriate partners must be brought into the process.  Most often, a LLC is developed with the non profit becoming a member with a bank and/or a developer.  The LLC actually captures the tax credits, with the bank purchasing them at an agreed upon rate.  Depending on the history and location of the building to be purchased and renovated, the LLC may be able to capture Brownfield, State and Federal Historic, and New Market tax credits.  The inclusion of these tax credits in the funding equation allows for a more attainable private sector support goal.  In some cases, the inclusion of tax credits is the only way the project has a chance at succeeding.  Private donors view the tax credits as a boon to the local economy, infusing public funds into a project that will yield significant returns in their community.