The Development Authority of the North
Country on Thursday approved "recapturing" low-income
housing tax credits for two rehabilitation projects because work was
not started in time to meet Internal Revenue Service requirements
for the projects to be eligible for the credits.
DANC simultaneously made a conditional commitment to offer the
projects the credits this year if the planned work takes place at
51-53 Market St., Potsdam, and at Emerson Place, Watertown.
The 51-53 Market Street L.P., a limited partnership formed to
rehabilitate buildings at those addresses damaged in a 1998 fire,
was awarded $67,791 in 2001 tax credits on Dec. 7, 2001, provided
they be used by June 24, 2002.
Also on Dec. 7, DANC awarded $294,660 in credits to Emerson
Place L.P., a limited partnership formed to assist Neighbors of
Watertown in rehabilitating the historic Emerson Place row-house
apartments and 12 surrounding properties. Tax credits can be sold at
a discounted rate, such as 80 cents on the dollar, to raise money
for a project, and the investors put them toward their income taxes.
IRS tax codes stipulate that 2001 tax credits had to be used
by June 24. When that date passed, the state Division of Housing and
Community Renewal advised DANC to recapture the credits and reissue
2002 tax credits to keep financing for the projects in place.
During its quarterly meeting, DANC's board of directors
approved a commitment to the two projects for 2002. provided they be
used by June 24, 2002.
Emerson Place received $318,160 in low-income housing tax
credits and 51-53 Market Street was awarded $70,091 in tax credits.
