DDD R e bate – 101 for Distr ic t Administr ator s
R ole s and R e sponsibilities L oc a l Jurisdic tions: • Appoint District Administrator to market, manage and report on program • Connect potential investment opportunities - such as Key Priority Projects - with potential Investors • Have sufficient knowledge of DDD Rebate to help Investors be successful • Provide local incentives and help Investors navigate local development process
T he Inve stor Who Are T he y? Sma ll Proje c t Inve stor • Often family-owned or independent business investing in existing business • Minimal experience in development • Need assistance in navigating local development process and incentives L a rg e Proje c t Inve stor • More familiar with development process, enjoy economies of scale, and have Ca n te na nts of a building or one of significant capital for investments multiple owne rs a pply? • Yes, but must demonstrate coordination Both ar e c r itic al to How ofte n c a n a n Inve stor a pply? Downtown r evitalization! • An Investor can apply for multiple projects within a fiscal year and District
Distr ic t R e bate Re ba te Amount Re ba te L imit • Up to 20% of Investor’s Qualified • $1,500,000 per building/facility within Real Property Investment (QRPI) 5-year period Pe rforma nc e - ba se d Wha t is a QRPI? • Project must be complete and placed- • Eligible capital expenses incurred in-service before rebate is issued after date of District designation • Necessary for rehab, expansion or Minimum Inve stme nt new construction of commercial, • At least $25,000 in QRPIs is required to residential, industrial, or mixed-use be eligible for the rebate building or facility • “Hard costs” associated with building
Distr ic t Plan Confor mity Proje c t Must Conform to Distric t Pla n Investors must submit with application a Project Conformity form signed by the District Administrator • Ensures project supports goals of Plan • Provides critical information for reporting purposes: • Incentive usage • Program impact • District Plan progress Please fill out completely! Project Conformity form available at www.DeStateHousing.com
E ligible E xpe nses Cla rific a tions: • E lig ible E xpe nse s Land improvements …i.e. excavation, grading, paving as part of new construction • Hard Construction Costs or substantial rehab of building/facility • Structurally part of building or facility • Demolition permitted only when replaced Carpentry by new building Drywall • Investor-owned solar panels – must: Roofing Be part of new construction or rehabilitation HVAC Own panels and be receiving Renewable Energy Doors/windows Tax Credit • Mechanical, electrical and Be attached to rooftop accessibility improvements to the • Businesses selling alcohol by bottle must building or facility. also sell food and alcohol by glass • Businesses manufacturing alcohol on premise eligible as industrial use
Ine ligible E xpe nse s Ine lig ible E xpe nse s Ine lig ible Ac tivitie s • • Soft Costs ‘Adult Entertainment Establishments’ • defined in 24 Del. C. 16, check cashing, Appraisal, architectural, engineering or interior design fees gambling facilities, pawn or gun shops, • Land or building acquisition tanning salons, tattoo parlors, vape • Legal, accounting, realtor and other shops, tobacco-only retailers or professional fees recreation-only marijuana retailers. • Furnishings, fixtures, window treatments • Institutional activities, defined by this • Machinery, tools, and other equipment program as hospitals, public and private • schools, colleges and universities. Site utility work, hook-up or access fees • • Federal, state or local government- General maintenance repairs, minor related activities, defined as libraries, repairs and service calls post offices, and public safety services.
Small and L ar ge Pr oje c t Se t-Aside s SMAL L PROJE CT S L ARGE PROJE CT S Qua lifie d Inve stme nt Qua lifie d Inve stme nt • $25,000 to $250,000 • Over $250,000 Ma ximum Re ba te Minimum Inve stme nt • $50,000 (20% Rebate) • $25,000 (deductible) Submit Applic a tions Anytime Ma ximum Re ba te • Rebate based on fund availability • $1,500,000 (Up to 20%) • Signed Project Conformity Form Re quire s a Re se rva tion • Copies of Invoices/Receipts • Signed Project Conformity Form • Placed in Service Documentation • 3 Years to Complete Project Option for L ite - Re se rva tion • CPA Attestation of Costs Re ba te Disburse d in 60 Da ys Re ba te Disburse d in 60 Da ys
L ar ge Pr oje c ts: Pr ior ity Consider ation Proje c t Ide ntifie d a s a Ke y Priority Proje c t • Re a dine ss to Proc e e d • Cre a te s Pe rma ne nt Jobs • Cre a te s or Susta ins Mixe d- Use De ve lopme nt • E xpa nds Housing Opportunitie s • Prote c ts Historic Re sourc e s • Ada ptive ly Re use s E xisting Struc ture s • Promote s Susta ina ble Pra c tic e s • Se e a p p e nd ixe s o f DDD Re b ate Pro g ram Guide line s fo r mo re info rma tio n
Mor e Good Info to Know T a xa bility of Re ba te Is it a Building or F a c ility? • Considered taxable income and an • Facility is defined as a complex of IRS 1099 Form is issued to Investor buildings, co-located at a single for each rebate location and are all necessary to conduct the same residential, trade, or F e de ra l a nd Sta te ADA business use. The following exceptions • Projects not meeting required are considered a facility: accessibility requirements may not Multi-family rental that are ‘scattered-site’ be eligible for rebate Separate homeownership units developed by a non-profit Site Control Ca sh T ra nsa c tions • Site control is required - evidenced • Don’t do it! Cash transactions are by legal title, sales agreement, or highly discouraged investors consent
Whe n You Ne e d to R e fe r T he m…. Pe nny Pie r son DDD Program Manager Penny@DeStateHousing.com 302-739-0246 T unisha Royal- Sc ott Management Analyst I Tunisha@DeStateHousing.com 302-739-0221
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