The Resurgent
New Markets Tax Credits in the News
February 9, 2022
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 using federal tax credits allocated by private investors in disadvantaged and distressed communities. In this biweekly blog, LifeCity will discuss key developments related to the NMTC Program.
This week, we will explore projections for the near future of the NMTC program as well as multiple projects aimed at creating affordable housing in low-income communities and communities of color.
News
At the Novogradac 2021 Fall Conference, a panel discussed the current and future state of the NMTC program, noting that the NMTC equity market is strong and is likely to remain so in the coming years. The panel discussed the diverse range of investments made through the program and specifically highlighted the recent emphasis on investing in health care and job creation opportunities. The panel advised qualified active low-income businesses (QALICBs) to be aggressive in pursuing multiple CDE partners in anticipation of highly competitive allocation rounds in the near future.
New York Community Bancorp, Inc. announced a $28 billion partnership with the National Community Reinvestment Coalition (NCRC) aimed at providing loans, investments, and other financial assistance to people and communities of color, low- and moderate-income families and communities, and small businesses. This will include over $21 billion for community development lending and investments, some of which will support NMTC-financed projects. These projects will partner with minority-owned businesses and support affordable housing in minority communities.
Projects
Broadway Lofts, a four-story, mixed-use building in downtown Mt. Pleasant, Michigan, held its grand opening on February 8. The building represents the culmination of a 15-year vision to bring a mixed-use development that would have long-term impact on the city’s downtown area. The building contains 48 energy efficient, affordable apartments in an NMTC-qualified census tract. The project benefited from a variety of financial incentives including NMTC allocations from multiple CDEs — Cinnaire and PNC. Representatives from both Cinnaire and PNC touted the project as a prime example of the NMTC program’s ability to create impact through affordable housing in distressed areas.
Enterprise Community Partners, Atlanta Neighborhood Development Partnership, and Westside Future Fund are utilizing NMTC-financing to bring 45 affordable homes to Westside and Southwest Atlanta. All of the homes will be available to families earning less than 120% of the local median income, with 20% of the homes being made available to families earning less than 80% of the median. The project is designed to expand home-ownership in historically Black areas which have experienced decades of disinvestment and gentrification, according to a joint statement by the companies involved in the project.
The North Carolina A&T Real Estate Foundation is planning to construct “The Resurgent,” a $60M multi-phase, mixed-use development designed to support both North Carolina A&T students and the surrounding Greensboro community. The Foundation has typically focused on housing local students, and this project represents its first project located off of the school’s campus. The development will contain housing, shops, offices, and parking. The Foundation is looking into numerous financing options including the use of NMTCs to complete the project.
These inspiring 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.