More than $3.5 billion in New Markets Tax Credits (NMTCs) were awarded to 76 community development entities (CDEs) this week.
The CDEs receiving awards were selected from a pool of 206 applicants that requested an aggregate total of $14.7 billion in tax credit allocation authority. The recipients are headquartered in 30 states and the District of Columbia. One-fifth (20%) of the investments will be made in rural communities, and it is estimated that these recipients will make more than $706 million in NMTC investments in nonmetropolitan counties, according to the Community Development Financial Institutions Fund, which oversees the federal program.
Several organizations involved in affordable housing were among the recipients in the 2019 round, including the Colorado Growth and Revitalization Fund administered by the Colorado Housing and Finance Authority (CHFA), which was awarded $50 million.
The fund supports projects such as community facilities, mixed-use developments, and businesses that pay living wages.
“This NMTC award will provide new opportunity for community investment. NMTC supports development that provides access to basic needs such as health care and fresh food. In light of COVID-19’s impact, the need for jobs and services like these is even more significant,” said Cris White, CHFA executive director and CEO.
Others also noted that the importance of the latest awards.
“This year’s allocation comes at a crucial time as communities across the country work to revive their local economies while meeting the health and service needs of their most vulnerable residents,” said Deborah De Santis, president and CEO of CSH (Corporation for Supportive Housing). “As with our prior awards, CSH will leverage this valuable federal resource to create new jobs in distressed areas while bolstering community-based health services. Our work is needed now more than ever.”
CSH was awarded $50 million in tax credits. It is the organization’s sixth NMTC award for a total of $285 million. CSH has used its prior rounds to leverage other sources of capital to finance projects resulting in over a thousand supportive housing units and nearly 500,000 health care visits annually for many who have lacked access to care in the past.
Other recipients this year include Enterprise’s ESIC New Markets Partners, Gulf Coast Housing Partnership, Housing Partnership Network, and the Local Initiatives Support Corp.
For more information, see the NMTC program award book.
