Worcester, Massachusetts – Housing Development Incentive Program (HDIP)

Who knew when I contacted the principals of Kelley Square Lofts and the Worcester Public Market in 2017 to help them with their Housing Development Incentive Program (HDIP) tax credit financing, that this project would be neighbors with the new Worcester Red Sox “WooSox” Minor League headquarters and stadium dubbed Polar Park?  The location in famous Kelley Square, for people familiar with Worcester, is known for the City’s most dangerous intersections.  The visionaries of Kelley Square Lofts and Worcester Public Market knew there was much to be done to improve the area, called the Canal District, before Polar Park was even imagined.  The idea that they could create 48 market-rate apartments above a 20,000 square foot European-style multi-vendor marketplace has created a destination, right in Kelley Square, and fits right in with the resurgence of enthusiasm for urban living.  So what will happen to this infamous intersection?  The city has embarked on the Kelley Square Improvement Project that will address the safety and operational deficiencies currently faced by all users, expected to be substantially completed by November 2020.  Just in time for the WooSox to open their doors and for WooSox fans to stop by the Worcester Public Market to visit Wachusett Brewing Co., the anchor tenant, on their way to the ballgame – along with 30+ other local vendors and food purveyors!

Clocktower Tax Credits, LLC has a deep base of national Tax Credit investors who desire to reduce their tax payments to government while providing funds instead to economic development projects like the Worcester Public Market.  With Clocktower’s expertise in HDIP credits, we understand the necessary steps for a successful financial closing, and we have the ability to help any economic development incentivized tax credit project.  For developers with prospective HDIP, Historic rehab or Low-Income Housing tax credit projects seeking Federal and/or State Historic tax credit equity, please contact Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com.

As the new decade begins, Clocktower Tax Credits embarks on its 10^th year of operations as one of the nation’s leading brokers of State and Federal Tax Credits.  Clocktower opened its doors in July 2010, as the nation was heading out of recession, and corporate profits were scarce.  Developers and producers earning tax credits needed to find new buyers and investors who could use the tax credits efficiently, and pay a sufficient price such that their projects remained economically feasible.  Hence, Clocktower was born to fill that need!

From the six tax credit transactions closed in 2010 to the sixty-three transactions closed in 2019, Clocktower has raised over $450 million dollars in tax credit equity, and contributed to the development and production of over $2 billion in real estate, renewable energy, and motion picture/digital media projects.  “Each of our transactions is a Win-Win-Win deal,” said President and Founder Jeff Jacobson.  “The developer wins by completing its project, the investor wins by saving on its taxes, and the tax credit agency wins by seeing its public policy fulfilled through the completion of a project not otherwise achievable.”

Clocktower continues to mine the nation for tax credits, covering about 75 different tax credit programs, with new ones becoming available every month.  “While we occasionally see a tax credit program paused or discontinued, we have states approving new economic development programs every legislative cycle,” Jacobson said.  Acquisition Associates Sue Ellyn Idelson and David Curtis research these new programs and reach out to program participants to offer their services, creating new opportunities to save corporate taxes while proving out the efficacy of these new programs.  “With $50 million in new annual State Historic Tax Credits available starting in 2021, California is a perfect example of a new program designed around tax credit incentives,” Curtis noted.  “Clocktower has the knowledge and experience to find the right buyers for these emerging programs.”

Jacobson reflects on his almost three decades in the tax credit industry, and is more excited than ever to celebrate Clocktower’s tenth year in business.  “We must be scoring well on search engines, as more developers searching for “Tax Credit Buyers or Brokers” are calling us to help them raise money,” he said.  Even after almost a thousand closings, he looks forward to helping all the parties “win” on the very next transaction.  Tax credit sellers should contact Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com or David Curtis (978) 440-0742 or DCurtis@ClocktowerTC.com, with details on their upcoming projects.

The grand opening of the affordable housing apartment building at 98 Essex Street is a major accomplishment for the city of Haverhill, Massachusetts, located north of Boston.  This is a great start to filling the need for affordable housing in the city, a major issue that many cities are encountering in the Commonwealth and across the country.  Affordable Housing and Services Collaborative, Inc. re-purposed the former Shoe and Leather building in Haverhill’s historic district into 62 affordable and workforce apartments.  Offered for rent are a mix of 15 one-bedroom, 41 two-bedroom and six three-bedroom apartments.  Ten percent of units are restricted to those earning 30% or less of the area’s median income.  These apartments are available to homeless families through a partnership with New Lease for Homeless Families, an organization that connects property owners with families in need.

The eight-story building includes a community lounge, children’s playroom, fitness center, laundry room and on-site management.  The development financing was achieved with a combination of state and federal grants, private construction financing and both federal and state Low-Income Housing Tax Credits (LIHTC) and Historic Tax Credits (HTC).  Clocktower Tax Credits, LLC procured the tax credit buyers for the LIHTC and HTC state credit transactions, providing $6 million of much needed equity for construction.

Clocktower is committed to aiding the development of affordable housing and historic rehabilitation in Massachusetts and many other states across the country.  We work with experienced Tax Credit buyers who have helped dozens of projects secure vital equity for construction of low-income and adaptive re-use development projects.  For information on how we can assist with the financing of your project, please contact Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com.

Clocktower Tax Credits, LLC attended Mercy Housing Lakefront’s Moving Forward Together event in October and was honored to be among the recipients of the Wintrust Partners in Innovation Award.  The award was given for our help in facilitating the sale of the Illinois Affordable Housing Tax Credits generated by the rehabilitation of Miriam Apartments in Chicago’s Uptown neighborhood.  Clocktower was among 16 institutions recognized by Mercy to celebrate the work in renovating the complex, which will comprise 222 units of housing for at-risk low-income residents of Uptown.

The event celebrated all supporters of Mercy Housing Lakefront and showcased the vital role that they play in creating affordable housing and supportive services to communities across the Midwest.  There were over 350 attendees of the event, including Illinois Deputy Governor Sol Flores, who gave a keynote address focused on the crucial need to support affordable housing solutions in vulnerable communities in Chicago.

Clocktower is committed to aiding the development of affordable housing in Chicago and the entire state of Illinois.  We work with experienced Tax Credit buyers, who, paired with Clocktower’s expertise in the IAHTC program’s nuances and closing process, have helped dozens of projects secure vital equity for construction of low-income developments.  For any help and feedback on prospective low-income housing-based development opportunities in Illinois, please contact David Curtis at (978) 440-0742 or DCurtis@ClocktowerTC.com.

In November 2019, California governor Gavin Newsom signed into law Senate Bill 451, which authorizes a new State Historic Tax Credit, providing a supplement to spur historic preservation and development alongside the Federal Historic Tax Credit.  The program, which will begin in 2021, will provide a 20% State Tax Credit against costs incurred during the rehabilitation in accordance with Historic standards administered by the state historic preservation office.  This percentage of cost incentive will increase to 25% for certain types of adaptive reuses, including affordable housing developments.  The initial legislation provides up to $50 million in annual Tax Credit allocation for projects across the state, providing an additional tool for the California government to combat the affordable housing crisis and spur preservation of historic properties.

Clocktower Tax Credits, LLC has strong investor appetitive for the new Historic Credits from our California Credit investor pool, including those with interest in both the State and Federal Historic Credits.  With Clocktower’s expertise in facilitating Historic Tax Credit investments nationwide, we have the ability to help any and every historic development in the Golden State maximize the benefit of using this innovative new financing tool.  For any prospective opportunities seeking California and Federal Historic Tax Credit equity, please contact David Curtis at (978) 440-0742 or DCurtis@ClocktowerTC.com.