1. Historic Homes Tax Credits: Catalyst for Renewal Ken Johnson Executive Director, Northside Institutions Neighborhood Alliance, Inc.

2. NINA: Revitalizing Asylum Hill Our Approach: Concentrate investment to maximize impact Concentrate investment to maximize impact Utilize historic assets to grow market Utilize historic assets to grow market Emphasize Façade Emphasize Façade  Public Space Creates Sense of Place Build wealth for community Build wealth for community

3. Historic Homes Tax Credits: Catalyst for Renewal Ten homes restored on Ashley, Garden & Sargeant Street $390,000 of HHTC proceeds are leveraging over $3.8 million of investment

4. 8 Ashley Street Before After

5. 18 Ashley Street Before After

6. 47 Ashley Street BeforeAfter

7. 227-229 Sargeant Street BeforeAfter

8. 246-248 Sargeant Street BeforeAfter

9. 36 Ashley Street Assist existing homeowners to apply for HHTC Encourage preservation and community reinvestment

10. Increasing Market Values 50 Ashley Street (with vinyl siding) ~ Fully Rehabilitated – Sold in 2000 for $82,000 8 Ashley Street ~ Historic Renovation – Sold in 2006 for $181,000

11. What is the Incentive? A state tax credit for historic homes equal to 30% of the qualified rehabilitation expenditures up to a maximum of $30,000 per unit of housing

12. What Buildings Qualify? One to four unit buildings Located in target area Listed on National or State Register of Historic Places

13. What is a Target Area? (A) a federally designated “qualified census tract”; (B) a state designated and federally approved area of chronic economic distress; or (C) an urban and regional center as identified in the CT Conservation and Development Policies Plan.

14. What Areas are Eligible? All of Bridgeport, Hartford, New Haven, New London, Waterbury and Windam Selected areas in 23 other towns

15. What Costs Qualify? Costs incurred for the physical construction involved in the rehabilitation of a historic home Examples: – Roof, porch, windows, floors, etc. – Outbuilding if it contributes to the historical significance of the historic home.

16. Costs that Do Not Qualify Owner’s personal labor Site improvements New additions Appliances Architectural fees, legal fees, financing fees (non-construction costs)

17. Who May Apply for a Tax Credit? Owner who can be: – Existing homeowner – For-profit developer – Non-profit developer

18. What is the Application Process? Part 1: Request for Historic Property Determination Part 2: Request for Certification of Proposed Work Part 3: Request for Certification of Completed Work

19. Who Can Utilize the Tax Credits? Corporations paying state business taxes (including banks, utility companies, insurance companies) Cannot be used against personal income tax Tax Credits are Assignable – Owner may request the tax credit voucher be assigned to a corporation in exchange for contribution

20. Owner-Occupancy Requirement Owner must occupy the historic home as their primary residence for five years Or Owner must agree to sell the historic home to an owner-occupant

21. Example: Filling a Gap Historic Two-Family Home Costs: Acquisition$50,000 Rehabilitation$200,000 Site Work$20,000 Soft Costs$30,000 $300,000

22. Example: Filling a Gap Tax Credits = 30% of Rehab $200,000 x.30 = $60,000 Tax Credits assigned to Area Corporation for $60,000 cash contribution.

23. Sources & Uses Total Development Costs$300,000 Sales Proceeds$240,000 Tax Credit Proceeds $60,000 $300,000

24. Coming Attractions

25. Corporate Support NINA founded by 6 major Asylum Hill corporations

26. Questions? Thank you: