St. Luke's Hospital Redevelopment: Understanding the Risks of Federal Historic Tax Credits in a Multi­Phase Redevelopment

Client: Enterprise Community Investment, Inc.
Faculty: Kate Collignon, Kei Hayashi
Team: Rashi Kumar, Timothy Pendrell, Lyle Sclair, Leigh Trucks, Elizabeth Webb
Year: 2011
Enterprise Community Investment, Inc. has invested in a senior affordable housing project, St. Luke's Hospital, located in Cleveland, Ohio. The project will be com­pleted in three phases and will utilize both Low­Income Housing Tax Credits (LIHTC) and Federal Historic Tax Credits. Enterprise wanted to know what risk the uncertainty of a multi­phased project poses on the viability of Historic Tax Credits and how this risk will be transmit­ted to its investors. The Capstone team traveled to Cleveland to visit the site and conducted research regarding similar developments across the country. The Capstone team's final product was a case study with best practices for future multi­phased historic tax credit projects and rec­ommendations for Phase III.