CDFI Webinar
New Markets Tax Credits in the News
March 8, 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.
News
On Friday, February 25, the application for the CDFI Bond Guarantee Program opened with a total of $500 million in bond guarantee authority. These bonds can be used by selected CDFIs to fund activities that revamp community development and community investments. For more information regarding the CDFI Bond Guarantee program, the CDFI Fund is offering a webinar on March 10, 2022 from 1 to 5pm ET. Register here: Access Webinar
On Monday, February 28, the CDFI Fund released information regarding the number of applicants for the CY 2021 NMTC allocation round. The 199 CDE applications received came from 43 states with a grand total of $14.7 billion in requests. The NMTC program allocated only $5 billion in the 2021 round; however, this large requested recovery allocation amount signals that many CDEs are interested in involvement with the NMTC program.
Stories
Enterprise Community Partners, Inc. is a nonprofit organization that invests in several NMTC projects across the country. One of its more recent developments, funded in part by the NMTC program, is the Ysleta Del Sur Pueblo Health Clinic Project in El Paso, TX.
The Ysleta Del Sur Pueblo is a federally recognized Native American tribe in Texas. Supported by its involvement in the El Paso government and local businesses, the Pueblo is able to participate in and maintain tribal activities as well as provide employment opportunities for members of the community and community programs, such as healthcare, courts, housing, and education. The construction of a high quality health facility will allow for the creation of jobs for the Pueblo people in addition to providing quality care for both members of the Pueblo community and the larger El Paso community.
The Ysleta del Sur Pueblo Health Clinic Project will be a state of the art health facility that, according to the NMTC coalition website, has created 142 permanent jobs and is a federally qualified health center. This center is estimated to cost over $56,000,000, but will be supported by $44,000,000 in NMTC allocations. NMTC helped the Ysleta Del Sur Pueblo tribe gain access to exceptional healthcare as well as to build new community facilities using funds allocated to boost the project.
Follow along the NMTC Coalition website or the Ysleta Del Sur Pueblo site to learn more about the construction of the health center and new developments in NMTCs.
This project and others like it 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.