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HTCC HTC Organization Sign on Letter 4-14-15

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April 15, 2015 The Honorable Dean Heller The Honorable Michael F. Bennet 324 Hart Senate Office Building 458 Russell Senate Office Building United States Senate United States Senate Washington, DC 20510 Washington, DC 20510 Dear Senators Heller and Bennet: We appreciate the work the Senate Finance Committee has undertaken to review the nation’s current tax law as you consider legislation that would comprehensively reform our tax code. Our groups thank the Committee, and particularly the Community Development and Infrastructure Working Group, for the opportunity to comment on the positive economic and social benefits the federal Historic Tax Credit (HTC) provides to communities throughout the nation. In light of the challenging budget environment and the bipartisan call for meaningful tax reform, we want to emphasize the importance of the HTC to the revitalization of communities throughout the country. Weakening or eliminating the credit would endanger the economic feasibility of nearly all historic rehabilitation projects. Without the credits, the numbers just don’t work. Historic rehab has a financing gap because rehabilitation is more expensive than new construction. Also, 84 percent of all transactions are located in low-income census tracts. Without the credits, these properties often sit idle often for decades, exerting a blighting influence on the surrounding neighborhood. Research conducted for the National Park Service by the Rutgers Center for Urban Policy Research documents that since enactment of the historic tax credit in 1981, the credit has leveraged $117 billion in private investment in historic rehabilitation, created nearly 2.5 million jobs and rehabilitated more than 40,000 historic buildings. The HTC is the most significant federal investment in historic preservation. It has also proven to be an efficient use of taxpayer dollars. Over the credit’s 34 year history, the federal government has allocated just over $24 billion in tax credits, but collected $28.6 billion in federal tax revenue from rehabilitation projects – more than paying for the program. For every dollar of public expenditure, private investors contribute four dollars toward the rehabilitation of historic properties. Rehabilitation projects across the country are putting Americans back to work. In a typical rehabilitation project, 60-70 percent of the total cost is labor as compared to new construction where labor often accounts for less than 50 of the total cost. Laborers on a rehabilitation project are more likely to be hired locally, and they in turn spend into the local economy. Seventy-five percent of the economic ripple effect of a historic rehabilitation project is captured by the state and city where the property is located. It has been stated time and again that the vast majority of new jobs in the United States are created by small businesses. Rehabilitated historic buildings are ideally suited to support emerging small businesses that are often looking for a central location and main street appeal. The historic tax credit is an important redevelopment tool that is helping revitalize cities, towns and rural communities across the country. As Congress charts our nation’s economic path forward, we April 15, 2015 P a g e | 2 ask that you protect and enhance this federal incentive that uses our nation’s past to meet the needs of today’s economy. Sincerely, 1Ricci LLC -WI Beyer Blinder Belle, Architects & Planners, LLP-NY 2KM Architects, Inc.-GA Beyond Buildings-CA 39/42 Tribune LLC-UT Bitter Root Cultural Heritage Trust-MT 620 Corp., Inc.-CO Bob Felter Construction-CA A Collected Life-GA Bola Architecture and Planning-WA ACHP Alumni Foundation-National Bond Brothers, Inc.-MA Adirondack Architectural Heritage-NY Borough of Sinking Spring Revitalization Committee-PA Agricultural Council of Arkansas-AR Bosco-Milligan Foundation/Architectural Heritage Center-OR AIA Houston-TX Boston by Foot, Inc.-MA AIA Ohio-OH Boston Preservation Alliance-MA AIA Wisconsin-WI Bostonian Society-MA Alaska Historical Society-AK Bostwick Design Partnership-OH Albion Academy Historical Society -WI Brian Wishneff & Associates-VA Alexander Company-WI Bricklayers & Allied Craftworkers-MD Alliance-MN Brooke Charter Schools-MA Alliance for Historic Landscape Preservation (AHLP)-NM Brown & Bills Architects, Inc.-OH Alliance for Historic Wyoming-WY Bruner/ Cott & Associates-MA American Cultural Resources Association (ACRA)-DC Bryan and Devan Conservation, LLC-AR American Institute of Architects-National Bryan Cave LLP-DC American Institute of Architects, California Council-CA Buchhalter Nemer- Andres Construction Services-TX Buck Development, LLC-IL Ann M. Dunning, Inc.-OH Building a Better Boyertown-PA Appleton Antique Lighting-MA Business Improvement District #44-WI Applied Architecture, Inc.-CA C&K Historic Consulting-PA Arcata ComDev-CA Cabana Building, LLC-UT Archeology Southwest-AZ California Preservation Foundation-CA Architectural Resources Group-CA Campus District, Inc.-OH Architecture + Interior Design-OH Canizaro Cawthon Davis-MS Architecture, Inc. -TN Cannon Heyman & Weiss, LLP-NY Argenta Downtown Council-AR Capitol Mall Association-AZ Arizona Downtown Alliance-AZ Capitol Zoning District Commission-AR Arizona Heritage Alliance-AZ Capstone Communities LLC-MA Arizona Preservation Foundation, Inc.-AZ Carlisle Tax Credits, LLC-MA Arizona Vintage Sign Coalition-AZ Casa Grande Main Street-AZ Arsenic and Old Lace Bed & Breakfast Inn-AR Center Avenue Neighborhood Association (CANA)-MI Art Deco Society of Boston (ADSB)-MA Center in the Square-VA Asian and Pacific Islander Americans in Historic Preservation -DC Chain Forge Hotel, LLC-DE Associated Students for Historic Preservation-IN Charlestown Preservation Society-MA AU Associates, Inc.-KY Chinese American Citizens Alliance-CA Azola & Associates, Inc.-MD Cho Benn Holback + Associates, Architects-MD Baker Hostetler-OH Cincinnati Preservation Association-OH Baldwin Historic Properties-IL City of Brownsville Planning Department-TX Batesville Preservation Association-AR City of Campell Historic Preservation Board-CA Bayou Preservation LLC-LA City of Glendale Community Development Department-CA Beard + Riser Architects, PLLC-MS City of Goldsboro Downtown Development, Inc.-NC Beard Law Company-PA City of Kettering-OH Beautiful Downtown Lewiston-ID City of Larkspur-CA Beehive State Buildings, Inc.-UT City of Prescott Historic Preservation Office-AZ Belinda Stewart Architects, P.A. -MS City of Richmond-CA Bellefonte Borough Historic Architectural Review Board -PA City of Urbana Community Development Services-IL Bellefonte Keystone Mainstreet Project-PA CityScape Capital Group, LLC-CA Beverly Historical Society-MA CivicWorks-MD April 15, 2015 P a g e | 3 CIVITAD Services, LLC-OH EHT Traceries-DC Clark Design Group PLLC-WA Eide Bailey-ND Cleveland Development Advisors-OH Elevation Architects-CA Cleveland Restoration Society-OH Elkins, P.L.C.-LA Clinton Brown Company Architecture, PC-NY Elm Street Gettysburg - Olde Gette Place-PA Clocktower Tax Credits, LLC-MA Enhanced Capital-National Cohen Realty Services, LLC-MA Enhanced Historic Credit Partners-National CohnReznick, LLP-NC Estacada Development Association-OR Colorado Preservation, Inc.-CO Evans Churchill Community Association-AZ Columbia Main Street-TN Exeter Group LLC-MN Commonwealth Architects-VA Fairfield Foundation-VA Community Affordable Housing Equity Corporation-NC Fannin-Lehner Preservation Consultants-MA Community Economic Development Association of Michigan-MI Fearnbach Historic Services, Inc.-NC Community Housing of Maine-ME Feldman's Neighborhood Association of Tucson-AZ Community Housing Partners-VA Ferro Investments, Inc.-UT Connecticut Main Street-CT Finegold Alexander Architects-MA Connecticut Preservation Action-CT First NBC Bank- Connecticut Trust for Historic Preservation-CT Florida Keys Reef Lights Association-FL Consortium Structured Investments-NC Florida Trust for Historic Preservation-FL Cornerstones, Inc.-TN Foley and Lardner, LLP-WI CTY Studio PLLC-ID Fond du Lac Historical Society-WI CUBE design + research, LLC-MA Foothill Resources, Ltd.-CA Custom Masonry, LLC-AR Forest City Enterprises, Inc.-National Czech Village/New Bohemia Main Street District-IA Fort Chaffee Redevelopment Authority-AR Dakota Partners, Inc.-MA Foss & Company-CA Daniels Real Estate-WA Foundation for Historical Louisiana-LA DATA Investigations LLC-VA Foundation for the Preservation of the Queen Mary-CA David and Gladys Wright House Foundation -AZ Four Oaks Group, LLC-VA David4Speeds, LLC-WI Fourth Avenue Merchants Association-AZ daVinci Planning, P.C.-IL Foutch Brothers, LLC-MO Deep Roots Development, Inc.-LA Fox Tucson Theatre Foundation-AZ Delaware Division of Historical and Cultural Affairs-DE Franklin Main Street-TN Deller Conservation Group-WI Fred Basch Architect, PLLC-NY Desert Archeology, Inc.-AZ Friends of Jefferson Park, Inc.-AZ DFC Group, Inc.-MO Frontiero Architects and Preservation Consulting-MA DLA Piper-National Future Unlimited Law PC-WA Dome Voyagers, LLC-NY G& H Environmental Consulting-NC Dominium-MN Gamble & Gamble, Architects-GA Dorfman Capital-MA Gandolfi & Associates, Inc.-LA Down By Law B&B, LLC-LA Garden District Preservation Association-AL Downtown Developers, LLC-UT Gateway Planning-National Downtown Jackson Partners-MS Geis Companies-OH Downtown Milford, Inc.-DE Geiser Grand Hotel-OR Downtown Neighborhoods & Residents Council of the Tucson Gem City-Hilltop Community Development and Housing, Inc. -OH Downtown Partnership-AZ Gene Kansas Commercial
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