The National Trust Community Investment Corporation

The National Trust Community Investment Corporation (NTCIC) makes equity investments in real estate projects that qualify for federal historic rehabilitation and state historic rehabilitation tax credits in all 50 states. NTCIC works with a wide variety of property owners including for-profit developers, nonprofit organizations and local governments. Its focus is on projects that stimulate the economic revitalization of the surrounding community.

Tax Credit Basics

New Markets Tax Credits

New Markets Tax Credit Tips from NTCIC

Regulations state that CDE investments must be in Qualified Businesses which, for certified historic and older properties, would include commercial space mixed-use properties that include residential rental units. Community and cultural facilities are considered commercial uses. A mixed-use (residential/commercial) property can qualify as long as more than 20 percent of the gross revenue in each of the 7-year compliance period comes from commercial rents CDEs typically require developers of mixed-use properties to guaranty the minimum ratio of commercial to residential rents.

All CDEs give a high priority to doing transactions that would not go forward but for the application of the NMTCs. CDEs also look to fund real estate projects that can demonstrate a high degree of community impact. Increased competition for allocation has caused most CDEs to commit to target areas of even higher distress than the minimum NMTC standards.

NTCIC’s New Markets Business

NTCIC is a certified CDE and won a $127 million NMTC allocation in 2003. In 2006, it was awarded $53 million. Twenty-five of its 33 transactions since 2000 have combined the federal historic tax credit and the New Markets Tax Credit. NTCIC has also closed several transactions where NTCIC enhanced the historic tax credit equity with NMTCs and another CDE provided a NMTC-enhanced loan.

Learn more about how to utilize NTCIC’s New Markets allocation