The rehabilitation and reuse of historic buildings – as affordable and market rate housing, offices, retail space, hotels, theaters or other neighborhood uses – is a key component of community revitalization. Bringing new life to historic sites brings people into communities to live, work, shop and play, as well as offering current residents’ reasons to stay and new opportunities to thrive.
Our attorneys are well-versed in the use of federal and state historic tax credits in the capital stack of a historic development project. We have extensive experience advising developer, lender and investor clients in all aspects of a potential transaction, including structuring the deal, tax matters and exit strategies. We also regularly counsel clients on how to combine the historic tax credits with other state and federal credits such as the low-income housing tax credit and the new markets tax credit, with the objectives of maximizing available capital.
Our past historic tax credit projects have included the rehabilitation of historic theaters, hotels, brownstones, mill factories, warehouses and many other former commercial and industrial buildings. In addition to complex tax structuring, these projects often involve challenging real estate issues, including multiple layers of leases, air rights tax-exempt structuring and condominiums. While we always aim for simplicity in tax and real estate structuring with the client’s goals in mind, Klein Hornig’s extensive experience is critical in designing – and implementing – the complex structures needed to develop these important projects and direct them toward successful operations.