New Partners for Community Reviatilization

New Partners for Community Revitalization

Latest News: (March 2010) Over the last year, NPCR has continued its work on the NYS Brownfields Tax Credits and, in concert with others, has developed a new proposal for administering the tax credits. We are now seeking ideas and comments from brownfield stakeholders on our proposal. Please download the memo, make your suggestions, and send them to Jody Kass at jodykass@npcr.net.

Analysis on the Use of Brownfield Tax Credits by Not-for-Profit Organizations, February 2009

In 2003, brownfield tax credits (“BTCs”) were created as part of the New York State Brownfield Law. Because BTCs are very different from low income housing tax credits (LIHTCs), there has been confusion in the community development industry as to how BTCs can be applied, and how BTCs work on projects which also involve LIHTCs. Adding to the confusion is the fact that the practical implementation of BTCs is continuing to evolve as the statute that created the BTCs was passed in 2003, but significantly changed in 2006 and again in July 2008. To address the needs of not-for-profit and for-profit developers and lenders in low- and moderate-income neighborhoods, NPCR identified the need to produce a report that:

Outlines the law and amendments through which BTCs were established,
Analyzes how not-for-profit corporations might utilize BTCs,
Examines whether the BTCs can be used in the context of projects developed under a cooperative or condominium ownership structure,
Considers whether the BTCs can be used in conjunction with LIHTCs,
Considers the value of the 2% BTC bonus to advance Brownfield Opportunity Area plans; and
Identifies those areas which are open to interpretation.

NPCR’s February 2009 report provides a factual foundation upon which community development entities can make informed decisions about how to structure their involvement in a specific project in order to obtain the benefit of BTCs. A copy of the report can be downloaded by clicking on the document title above.

Missing the Target Making: Making Brownfields Tax Credits work for Communitites, May 2007

Three years after the NYS 2003 Brownfields Law was passed, it was clear the programs created by the law were not working as intended. The principal problem was the way brownfield tax credits were awarded; essentially, any site that entered the Brownfield Cleanup Program, regardless of public benefit, relative cost of cleanup compared to development, consistency with economic development objectives, or compatibility with a regional or municipal plan generated brownfield tax credits as-of-right. NPCR released this report in May 2007 (before the 2008 Legislative changes) to document the problems and provide a series of recommendations for fixing the tax incentives to ensure they worked more effectively for low and moderate income communities and communities of color.