Historical Mixed Use

[Devonte Dinkins]

I am interested in using a FHA 203K loan to renovate a Mixed-Use building. I am looking to have four residential units and two commercial units. Does anyone have experience with historical renovations? How does the process usually work?

[Eric Army]

Hi Devonte- I love historic mixed use projects-- especially those that revitalize the urban core of our great little cities & towns! These have had a lot of interest in my market, and I've had the opportunity to be involved from the design side. The first question is are you going for historic tax credits? These are worth 20% of your construction cost (but you need to spend more than you paid for the building). Meeting these historic guidelines is often counter-intuitive to some developers (ie you can't expose a brick wall if it was originally plastered), but the t.c. Is often what makes the deal make sense. Some states have an additional 20% state historic tax credit that you can piggyback onto your application (looks like md may). It'll make you want to rehab mills all day! As you're assembling your team, if you're being held to the dept of interior historic preservation standards make sure at least someone on your team (architect, contractor, developer or tax credit consultant) is familiar with the standards & process. I'd love to answer any specific questions. We're outside your area, but if you want some inspiration / projects to ask questions about: http://studiomeja.com/urban-rehab/