Federal Historic Tax Credit Changes Affecting Local Developers, Nonprofits | Community Idea Stations

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Federal Historic Tax Credit Changes Affecting Local Developers, Nonprofits

Some recent tax reforms at the federal level are being felt locally. Local developer Spy Rock Real Estate Group is planning to convert warehouse space into affordable housing and take advantage of historic rehab tax credits.

But Chris Wodicka with the Commonwealth Institute says those tax credits aren’t all available during the first year of a project like they used to be. “For those projects that may be counting on it being at once, that might change some of the calculus around some of the decisions on which projects to take on and things like that,” Wodicka said.

That’s become an issue for Richmond’s largest homeless services group CARITAS. The organization is currently renting warehouse space from Sky Rock, and is in need of a new home by the end of June.  Sky Rock will begin development before the new fiscal year begins July 1, also when the federal tax changes take effect. “The reality is, we provide services that we don’t want to interrupt,” said CARITAS CEO Karen Stanley.

The 60,000 square-foot warehouse space allows them to distribute furniture and goods to families in need, run a workforce development program, and more. They’re looking for an alternative space to accomodate these services through fall 2019. Those with leads on a space can contact CARITAS Chief Operating Officer Karen O'Brien at 804-887-1590.