1. Fourteen Things We Learned Today Forrest Milder 617-345-1055

2. 1.The Rehabilitation must be consistent with the reason for the certification. Restoring the building to how it looked in 1850 wont work in an Art deco district. 2.Get to the SHPO and the Parks Service early. If you demolish something that they think matters, you may have committed a terminal mistake

3. 3.The 24-month period is only a test. Qualified rehabilitation expenditures, eligible for the credit, are computed over a longer period. 4.The credit is available when the building is placed in service. So, be sure to get the investor in on time.

4. 5.Only rehabilitation expenditures count, not site improvements and enlargements. This is different from the LIHTC 6.Most investors expect to use the lease-pass- through or master lease or sandwich lease structure. This makes the transaction a LOT more complicated. The HTC reduces basis which can affect LIHTCs and NMTCs.

5. 7.Balance the 5-year need to stay in the project (due to recapture) with the concept of puts and calls to assure that the investor leaves. (The investor wants the loss anyway). 8.When is a dollar more than a dollar? Investors consider risk of construction and recapture, the size of the deal, whether they pay for the credits as they vest.

6. 9.Get the lender on board. Security and non- disturbance agreements can be important. 10.State Tax Credits are a hot area for the IRS, which seems to think that they are always sold, so that someone has taxable income from the investment.

7. 11.NMTC investor worries about having to reinvest if the transaction goes bad. 12.The Parks Department is considering the standards, and may make them easier before the end of the year 13.Transactions involving two credits (or more!) are VERY complex

8. 14.If you are going to do a post-1950s rehab, it really helps if the architect who did the building is dead