Apr 6 2005
The National Trust for Historic Preservation and Bank of America are pleased to announce the renewal of an initiative to bring expanded equity resources to the rehabilitation of important historic properties in communities across the country.
The agreement involves increasing the amount of capital available to the Trust for investing in historic rehabilitation projects from $25 million to $40 million and changing the name of its historic tax credit fund from the Banc of America Historic Tax Credit Fund to the National Trust Community Investment Fund.
The name change will identify the Fund more closely with its parent, the National Trust for Historic Preservation, a nonprofit organization with a strong national reputation for its educational, advocacy, community revitalization and legal defense activities on behalf of the historic places that define the character of America. The National Trust Community Investment Fund (NTCIF) is managed by the National Trust’s for-profit subsidiary, the National Trust Community Investment Corporation (NTCIC) and capitalized by Bank of America’s Community Development Corporation.
The Fund acts as a tax credit syndicator, meaning it invests the Bank’s equity into real estate rehabilitation projects that qualify for the 20% federal historic tax credit—and state historic tax credits and New Markets Tax Credits where applicable. In exchange for the equity, the developer transfers the tax credits generated by the rehabilitation to the Fund. The Fund then provides the credits to Bank of America. This practice has enabled the successful rehabilitation of countless historic structures throughout the country.
“The relationship between the National Trust and Bank of America combines the best that the two organizations have to offer: the Trust’s unrivaled expertise in the field of historic preservation and the resources and financial strength of Bank of America.” said John Leith-Tetrault, president of National Trust Community Investment Corporation. “The result is a financing vehicle that can make otherwise difficult historic rehabilitation projects financially feasible.”
The Fund’s capital base will be replenished annually to maintain its new $40 million level. This will enable the Fund to reach a greater number of historic rehabilitation projects and ensure the continuing investor support of Bank of America.
“As a leader in community development, Bank of America understands how historically significant structures can serve as anchors of community identity and help revitalize their surrounding neighborhoods,” said Phyllis Caldwell, president, Bank of America Community Development Banking. “The National Trust has proven to be a very effective partner in creating community impact through the historic tax credit investment marketplace.”
NTCIF will continue to provide a full-range of tax credit syndication services, including “twinned” equity investments that combine both historic and new markets tax credit equity, historic-only federal and state historic equity investments, and referrals to the National Trust Small Deal Fund—a fund for historic tax projects earning as little as $200,000 in federal/state credits. Since its historic real estate investment operations began in 2000, NTCIC has closed 25 deals totaling $103 million in historic and new markets tax credit equity. Projects range in size from a $6.5 million combined new markets/historic tax credit equity investment in the Dia Beacon rehabilitation—involving the conversion of a vacant industrial plant into a world-class modern art museum in upstate New York—to an $800,000 investment in the transformation of a gas station into biotech wet lab research and office space in Durham, North Carolina.
For more information on the National Trust Community Investment Fund or to see a list of projects in your area that have been impacted by its financing, call Erica Stewart at (202) 588-6229 or visit www.ntcicfunds.com.