News Release 2008-140 | November 26, 2008
OCC Focuses on Historic Tax Credit Program
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today published a Community Developments Insights report that describes how banks participate in the Historic Tax Credit (HTC) program which is used to rehabilitate and restore certified historic properties.
"For more than 30 years, the federal Historic Tax Credit program has helped revitalize communities by encouraging the flow of over $45 billion in private funds to facilitate the rehabilitation of historic buildings," said Comptroller of the Currency John C. Dugan. "These investments have facilitated the redevelopment of hundreds of thousands of residential and commercial properties, including a substantial number of low- and moderate-income housing rental units."
This Insights report describes the HTC program with a particular focus on topics of interest to bankers new to the product. The report examines the primary risks and regulatory considerations associated with financing HTC projects as well as how Historic Tax Credits would be considered in a bank’s Community Reinvestment Act examination.
The report also discusses how national banks may utilize these credits under their public welfare investment authority, which the Housing and Economic Recovery Act recently expanded to include a broader range of communities targeted for revitalization, FEMA-designated disaster areas, and rural underserved and distressed communities.
The Insights report can be accessed on the OCC’s Website.