OCC Focuses on Historic Tax Credit Program

December 11, 2008

WASHINGTON — The Office of the Comptroller of the Currency (OCC) has 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 Web site at: Source: http://www.occ.gov/cdd/Insights-HTC.pdf.

Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.