Then + Now, Shifts we've anticipated
Then: Stable tax credit markets and predictable returns defined the preservation finance landscape
For more than a decade, historic preservation real estate investment operated within a relatively stable policy and economic environment. Federal and state tax credit programs provided dependable incentives. Capital markets supported projects with long-term horizons, and interest rates and inflation remained low. Developers and investors alike could rely on predictable structures, straightforward deal flow, and consistent underwriting benchmarks.
Now: Uncertainty is defining the investment landscape, and many are being caught off guard
Today, the picture has changed dramatically. Rising interest rates, volatile construction costs, labor shortages, and shifting federal priorities have disrupted once-reliable assumptions. Many investors now face unfamiliar headwinds—slower closings, reduced yield, and complex compliance risk. But these aren’t surprises to NTCIC. We anticipated the signals, adjusted early, and are evolving how we work with investors to provide stability, insight, and performance in an unpredictable market.
Facing the Challenges
At NTCIC, we understand that the real estate investment world—especially in preservation finance—is facing serious headwinds. We talk to developers, funders, and local leaders every day who are navigating economic uncertainty, policy shifts, and reduced deal flow. These are real challenges, but they’re not insurmountable—with the right partner.
Policy Uncertainty
Regulatory changes at the federal and state level have introduced complexity around compliance, timing, and eligibility—causing hesitation and delays in project pipelines.
Return Pressure
Climbing costs and extended project timelines are straining expected investor returns. Many traditional financing models fall short unless supported by innovative deal structures and proactive risk management.
Deal Complexity
Projects now require more coordination than ever, involving blended financing, community engagement, and metrics that can stretch bandwidth and decision-making cycles.
Policy and Legislation
NTCIC is closely tracking the legislative landscape and helping our partners stay ahead of changes before they impact deals.
What This Means For You, The Investor
We understand that today’s investment environment can feel uncertain, even unpredictable—but our mission at NTCIC is to make it manageable, navigable, and ultimately successful for our partners.
Here’s How NTCIC Is Responding
NTCIC has already adapted to meet this moment. We’re revising investment models, introducing new tools for underwriting risk, and expanding our support for blended capital stacks that incorporate ESG, CDFI, and state-level funding. Our legal and policy teams are proactively advising partners to stay ahead of shifting regulations, while our underwriting process now includes more robust contingency planning. We’ve also launched strategic initiatives to ensure investor returns remain competitive without compromising mission. From our investor dashboards to flexible equity terms, we're focused on stability, clarity, and impact—even in challenging conditions. Because preservation doesn’t stop when the market shifts—it just evolves.
How we prepared for change
NTCIC has always approached industry shifts with a careful eye on emerging trends and a commitment to long-term planning. In recent years, we’ve taken deliberate steps to adjust our strategies, strengthen our partnerships, and evolve our services—ensuring we remain a reliable, responsive partner in a rapidly changing investment landscape.
Resilience Through Crisis
In 2020, as the COVID-19 pandemic disrupted markets and construction pipelines nationwide, NTCIC acted quickly to reinforce project stability and investor confidence. We re-evaluated deal timelines, introduced more flexible equity delivery structures, and provided partners with contingency planning support to navigate uncertainty. These early adjustments helped minimize project delays and positioned us—and our investors—to weather a rapidly evolving environment without losing sight of long-term community outcomes.
Policy Inteligence Scaling up
By 2021, it was clear that staying ahead of shifting tax credit regulations would require more than reactive strategies. NTCIC expanded its internal policy and compliance capabilities to closely monitor state and federal developments in real time. This proactive approach allowed us to communicate early warnings, interpret legislative changes quickly, and advise project teams before regulatory shifts impacted funding or eligibility—strengthening our role as both a capital provider and trusted advisor.
Integrated ESG Strategy
In 2022, NTCIC began formally integrating Environmental, Social, and Governance (ESG) principles into project evaluation and reporting. We recognized that aligning with impact-focused investors required clearer, measurable outcomes tied to community benefit, sustainability, and inclusion. Our revised investment criteria now incorporate ESG goals alongside financial metrics—ensuring that projects supported by NTCIC don’t just perform financially but also contribute meaningfully to equitable, long-term development.
“We’re navigating unprecedented change—but we’re not reacting; we’re leading. Our job is to make sure investors have the confidence, tools, and insight they need to thrive in the next era of historic real estate investing.”
Forward Strategy
Adapting with Purpose, Planning For What’s Next
NTCIC is taking bold steps forward to expand the value we bring to investors. We’re launching new offerings tailored for this evolving landscape, including product lines that blend historic preservation with modern market demands. These are grounded in our mission—but driven by performance and opportunity.
New Products & Services
- Impact Investing: Investment options aligned with measurable social and community impact goals, for mission-forward capital.
- State Tax Credit Advisory: Hands-on guidance and strategy for maximizing state-level incentives across multiple jurisdictions.
- Integrated Capital Structures: Creative financing strategies that combine HTCs, NMTCs, green bonds, and other tools to stabilize returns.
Talk to Us About the Challenges You’re Facing
We’re here to help you make sense of the moment and move forward with confidence. Let us know your concerns—and let’s start planning together.
Resource That Support Purpose-Driven Projects
Insights & Impact
Tax Credit Resources, Links & Helpful Tips
Comprehensive guidance curated for first-time preservationists and smaller projects, covering both Historic and New Markets Tax Credits.
Frequently Asked Questions about Tax Credits
A detailed FAQ covering key questions about HTC and NMTC structures, eligibility, and syndication processes.
How to Take Action for the Historic Tax Credit Growth & Opportunity Act (HTC‑GO)
Advocacy toolkit with talking points and outreach guides to support legislative efforts.
Main Street Webinar 2: How to Use Tax Credits in Your Main Street
Webinar recording and recap explaining how tax credits support historic preservation.
Tax Credit Resources, Links & Helpful Tips
Comprehensive guidance curated for first-time preservationists and smaller projects, covering both Historic and New Markets Tax Credits.
Frequently Asked Questions about Tax Credits
A detailed FAQ covering key questions about HTC and NMTC structures, eligibility, and syndication processes.
How to Take Action for the Historic Tax Credit Growth & Opportunity Act (HTC‑GO)
Advocacy toolkit with talking points and outreach guides to support legislative efforts.
Main Street Webinar 2: How to Use Tax Credits in Your Main Street
Webinar recording and recap explaining how tax credits support historic preservation.