Ninety-nine community development entities (CDEs) have been selected to receive allocations of New Markets Tax Credits (NMTCs) this year.

These groups will be able to issue to their investors a combined $3.5 billion in equity for which NMTCs can be claimed.

The program aims to stimulate economic development in low-income communities by attracting private investment capital. It provides tax credits to investors who make qualified equity investments in CDEs, which then invest the proceeds in low-income communities.

The 99 allocatees were selected from 250 applicants that requested a total of $23.5 billion in the latest round.

Officials originally expected $5 billion to be available for the round. However, Congress reauthorized the program at $3.5 billion late last year.

In order to adjust its preliminary award determinations to the $3.5 billion level, the CDFI Fund reduced its preliminary allocations by 30 percent, with the exception of those receiving $10 million or less.

This year’s median award size of $35 million is smaller than in the past. In comparison, the median amount was $50 million in 2009.

Awards breakdown

Coastal Enterprises, Inc., in Wiscasset, Maine; the Portland Family of Fund’s National Community Fund I in Portland, Ore.; the Community Reinvestment Fund’s National New Markets Tax Credit Fund in Minneapolis; and Ag Ventures Alliance Cooperative’s Rural Development Partners in Mason City, Iowa, each received allocations of $77 million, the largest single awards this year.

 In prior rounds, allocations of $100 million and up have been given, said Gary Perlow, a principal at Reznick Group, an accounting and business advisory firm that represents many CDEs.

Although the award amounts are smaller this year, the CDFI Fund was able to spread the credits to more groups. “It’s a healthy thing because it got more people in the game,” Perlow said.

As in the past, a number of organizations familiar to the affordable housing industry received credits in the 2010 round.

The Corporation for Supportive Housing  (CSH) is a first-time allocatee. It will use its $25 million allocation to finance permanent supportive-housing developments with an eye toward multi-use projects with space for on-site support services, community health centers, and retail or commercial uses.

CSH provides financial products to traditional supportive-housing developers, as well as nonprofits that may not customarily work as developers—like mental health, substance use, and homeless service providers.

“CSH provides tailored, below-market-rate financing to accommodate supportive-housing sponsors’ limited ability to carry market-rate debt,” said Brigitt Jandreau-Smith, CSH chief lending officer. “Our funding is a catalyst for new projects, and this allocation will go a long way to help CSH continue and expand our work nationally.”

BRIDGE Community Development, Inc., an affiliate of BRIDGE Housing Corp., a San Francisco-based nonprofit affordable housing developer, received an $18 million allocation to make equity and debt investments in catalytic mixed-used projects throughout California.

Volunteers of America National Services CDE will use a $35 million allocation to provide financing for affordable housing and other social service-oriented projects.

King County Housing Authority in Seattle received $28 million to provide construction and permanent loans to community service facilities in targeted low-income areas. It also plans to make loans to small businesses, builders of affordable for-sale housing within HOPE VI projects, and nonprofit developers of manufactured housing serving low- and very low-income people.

Two state housing agencies also received allocations. The Pennsylvania Housing Finance Agency’s Commonwealth Cornerstone Group received $28 million to enhance community revitalization efforts throughout the state, and the Wisconsin Housing and Economic Development Authority received a $10 million award for its Wisconsin Community Development Legacy Fund, which will provide financing to help revitalize urban areas and struggling rural communities.

The Local Initiatives Support Corp. received $70 million to provide debt and equity to various community development projects. Enterprise’s ESIC New Market Partners, LP, received $62 million to also provide debt and equity products to key real estate projects.

Affiliates of Baker Tilly, Capital One, Great Lakes Capital Fund, Massachusetts Housing Investment Corp., PNC, The Related Cos., Wells Fargo, and WNC & Associates, Inc., also received allocations. For a full list, visit