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Legislative Agenda

Legislative and Public Policy Initiatives

The National Trust Community Investment Corporation (NTCIC) is a founding member of the National Trust Tax Policy Council, a coalition of investors, syndicators, tax accountants, lawyers and preservation developers dedicated to raising awareness for the need to amend the federal historic tax credit program.

Legislation

Working through the Tax Policy Council, NTCIC has helped frame legislation that would enhance the utility and value of the rehab tax credit for smaller-scale developers, and improve its compatibility with the Low-Income Housing and New Markets Tax Credits. The legislation would also make critical improvements to the 10 percent non-historic rehab credit. The Bill (H.R. 1043 in the House and S. 584 in the Senate) was introduced to both Chambers on February 14, 2007 by Reps. Stephanie Tubbs Jones (D-OH) and Phil English (R-PA) in the House, and by Sens. Blanche Lincoln (D-AR) and Gordon Smith (R-OR) in the Senate. The bill proposes several amendments to the existing rehab tax credit.

  1. Basis Reduction – It would eliminate the Low-Income Housing Tax Credit basis reduction when combining the LIHTC with the rehab tax credit (RTC). It would reduce to 50 percent from 100 percent the basis reduction in an RTC-only transaction.
  2. Greater Subsidy in Distressed Areas – It would provide a 130 percent basis boost for the historic rehab credit in the most difficult to develop areas (DDAs).
  3. Making the 10 Percent Credit Available for Housing – The English-Jefferson Bill would allow housing as a use for 10 percent credit eligible buildings. The bill also includes changing the definition of “older building” from “built before 1936” to any property “fifty years old or older.”
  4. Facilitating Small Deals – H.R. 3159 would increase the historic rehab credit to 40 percent for the first $1 million in qualified rehab expenditures on projects that have total QREs of no more than $2.5 million.
  5. More Favorable Tax-Exempt Lease Rules – English-Jefferson would eliminate 3 of the 4 rules that limit the development or leasing of tax credit projects by nonprofit sponsors. Only the classic sale-lease back prohibition would remain.
  6. Application to Condominiums – H.R. 1043 would remove the recapture clause -- requiring the payback of tax credits upon conversion of a tax credit property into a condo development-- to broaden the tax credit's use to condominium developments and in so doing, provide new support for the revitalization of urban neighborhoods nationwide.   

Public Policy

Review of Secretary’s Standards - Also in conjunction with the National Trust Tax Policy Council, NTCIC has been working with the National Park Service to review its current interpretation of the Secretary of the Interior’s Standards as it is applied to rehabilitation tax credit applications. After extensive research--including two hearings, the Committee on theFederal Rehabilitation Tax Credit Program released a report, "Federal Historic Rehabilitation Tax Credit Program--Recommendations for Making a Good Program Better". In November, 2007, a federal advisory panel, the National Park System Advisory Board, responded favorably to the report, adopting its call for changes in the administration of the program. If implemented, the changes would be among the most signficiant in the history of the nearly 30-year old historic tax credit program. A summary of the report is available for download.

Master Tenant Structure and HUD Insurance - NTCIC is also working with the Council to lobby HUD to adopt the use of the Master Tenant ownership structure for historic property developers who use HUD-insured mortgage programs.

National Economic Impact Report - NTCIC is working through the Council and Rutgers University’s Center for Urban Policy to publish an annual report on the national economic impact of the federal rehabilitation tax credit program. The first report was presented at the annual meeting of the National Housing and Rehabilitation Association in Miami Beach on March 10, 2006.

Gulf States Relief Waivers – NTCIC and the National Trust Tax Policy Council successfully lobbied the U.S. Treasury on a set of regulatory waivers that would make the rehabilitation tax credit a more potent force in the rebuilding of the hurricane damaged areas of the Gulf region.
View a list of requested tax credit related relief measures