Bass, Berry & Sims attorney Gil Uhlhorn authored an article for Builder and Developer magazine outlining different financing options developers could consider for multi-use projects. Given the boom in redevelopment of abandoned buildings and transitioning neighborhoods, a number of financial incentives are available, including the most commonly used payment-in-lieu-of-tax (PILOT) and tax increment financing (TIF). Additionally, developers could consider federal programs that reward funds for historical restoration of properties. The Federal Historic Tax Credit (HTC) program provides eligible developers of historic structures with tax credit, and the New Markets Tax Credit (NMTC) provides capital for projects in qualifying low-income communities.
"Ultimately, owners and developers will have to consider each available capital source to determine how to best build the capital stack for any individual project," said Gil. "Building a multi-layered capital stack in a complex, urban redevelopment requires that the developer be creative, knowledgeable, open-minded and surrounded by a good team of partners, contractors, bankers, architects and lawyers."
The full article, "Building Capital Stack in Multi-Family Urban Redevelopments," was published in the October 2017 edition of Builder and Developer magazine and is available online.