NMTC Progress Report
New Markets Tax Credits in the News
July 12, 2021
The New Markets Tax Credit (NMTC) Program is a federal financial program developed by the United States Department of the Treasury to incentivize community development and economic growth using federal tax credits allocated by private investors in disadvantaged and distressed communities. The private investors are financial intermediaries that provide loans and investments administered by the US Treasury’s Community Development Financial Institutions (CDFI) Fund. The local financial intermediaries are known by the program as Community Development Entities (CDEs). In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
Research
On June 17, 2021, the New Markets Tax Credit Coalition released its 2021 NMTC Progress Report providing a more comprehensive analysis of NMTC activities in 2020. In 2020, CDEs used $2.9 billion in NMTC allocations to finance 272 projects. These projects resulted in the creation of over 28,000 full-time jobs and over 16,000 construction jobs. 82 of these projects pertained to healthcare access, with the potential to reach over 1.3 million patients. Importantly, 85 percent of these projects were in severely distressed communities.
News
Novogradac awarded ten CDEs with an Honor for Investment in NMTC-Financed Properties. The awards acknowledge participants who strive for and exhibit excellence in community development. CDEs honored include DV Community Investment, PeopleFund NMTC, CCG Community Partners, Dakotas America, USBCDE, AMCREF Community Capital, Cinnaire New Markets, The Community Builders, The Rose Urban Green Fund, and Chase New Markets. Winners will be honored at the Novogradac 2021 NMTC Fall Conference this October.
The Biden Administration recently released a series of detailed tax proposals called the “Green Book.” One such proposal, if passed, would permanently extend the NMTC program with a new allocation for each year after 2025. Annual allocations would be $5 billion, adjusted for inflation after the year 2026. This would be effective immediately upon enactment of the bill.
Projects
A $14 million affordable housing complex called Perseverance was recently opened in Cincinnati, Ohio. The 32 new residential apartments are intended to serve people making 30-60 percent of the median income for the area. Units range from studios to three-bedroom apartments. The complex also offers five ground-level commercial spaces. Funding for the project was provided by a variety of sources including NMTC, federal and state Historic Tax Credits, and Low-Income Housing Tax Credits.
The new Rockaway Beach Medical Arts Complex in Queens, New York was officially fully leased as of last month. The Complex’s purpose is to provide better healthcare for the medically underserved population of the Rockaway Peninsula. Tenants of the 60,000 square foot space include St. John’s Episcopal Hospital, MercyFirst Child and Family Care, and an ambulatory surgical center. Rockaway residents were disproportionately affected by COVID-19 due to injustices involving healthcare access. The project created 100 new full-time jobs and will serve over 5,000 community members each year. This project was made possible by $9 million in NMTC grants in collaboration with NYC Economic Development Corporation and Chase Community Development Bank.
These great projects and more are underway across the US. LifeCity specializes in impact assessments and third-party validation services for CDEs engaged in NMTC financed projects. As a third-party, we help CDEs and other companies measure, manage, track, and report their impact to ensure a credible and transparent message. Our services are available across all stages of the NMTC allocation process and provide personalized impact reports and videos that support clients, projects, and communities.