The Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) has selected 107 organizations to receive more than $5 billion in New Markets Tax Credit (NMTCs) awards.
The awards, which are under the program’s 2021 funding round, aim to bring investment capital to spur economic growth in low-income communities across the country. The 107 community development entities (CDEs) receiving awards were selected from a pool of 199 applicants that requested an aggregate total of $14.7 billion in tax credit allocation authority.
The award recipients are headquartered in 35 states and the District of Columbia. Approximately $3.8 billion, or 78%, of NMTC investment proceeds will likely be used to finance and support loans to or investments in operating businesses in low-income communities, and approximately $1 billion, 22%, of NMTC investment proceeds will likely go to finance and support real estate projects in low-income communities.
Over 20% of the investments will be made in rural communities, according to Treasury officials.
Several affordable housing organizations are among this year’s winners, including The Community Builders, which received a $50 million allocation. It is TCB’s sixth award, bringing its total NMTC allocation received to $240 million. The Community Builders CDE has deployed its $178 million in previous awards to support 30 projects of various types across 11 states and Washington, D.C.
A few of the other organizations receiving an allocation are Cinnaire New Markets, $55 million; Corporation for Supportive Housing, $55 million; ESIC New Markets Partners, $55 million; Gulf Coast Housing Partnership, $25 million; The Housing Partnership Network, $45 million; Local Initiatives Support Corp., $40 million; and Massachusetts Housing Investment Corp., $35 million.
The awards were announced at the recently redeveloped Lexington Market in Baltimore, which was supported by a previous NMTC award to create a new public market building and plaza.
“Lexington Market demonstrates what can be accomplished when projects in low-income communities can access needed financing for initiatives that will help revitalize them,” said CDFI Fund director Jodie Harris. “We often associate the New Markets Tax Credit with new buildings, but, just as frequently, the tax credit allows for a new use of an existing property. The Lexington Market project will breathe new life into this neighborhood by making fresh food available to residents, build local businesses and wealth, and provide a community gathering place.”
Since the inception of the NMTC program, the CDFI Fund has completed 18 allocation rounds and has made 1,461 awards totaling $71 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.
A full list of the awardees is available in the CDFI Fund’s award book.
