Detroit Food Commons
New Markets Tax Credits in the News
May 18, 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
The Detroit Black Community Food Security Network (DBCFSN) and Develop Detroit recently celebrated groundbreaking on construction of the Detroit Food Commons. The Detroit Food Commons will include the Detroit People’s Food Co-op, a Black-led grocery co-op, and aims to empower Detroit’s Black community with increased control over food and food systems. The facility will include an incubator kitchen, healthy foods cafes, and a community space for meetings, lectures, and other group events. This groundbreaking comes at the tail end of 12 years of planning, and the construction of the Commons will hopefully open sometime during the 2023 summer. The total project cost is $19.5 million and includes NMTC investments. To find out more about the Detroit Food Commons and track its progress, visit its website here.
Affordable housing groups recently called on Treasury Secretary Janet Yellen to protect affordable housing tax credits, such as the low-income housing tax credit (LIHTC) and NMTC from the global corporate tax minimum. The global corporate tax minimum is a 15% tax on multinational businesses, a move that would diminish incentives to invest in low-income communities and may financially punish some companies for investing with LIHTC, NMTC and other financing tools. The Biden Administration has previously endorsed the global tax minimum; however, at least 48% of equity investments from LIHTC investors, and likely NMTC investors, would be at risk with the implementation of such a tax. To learn more about how the global tax minimum would impact affordable housing investments, please visit this article.
Projects
The Miami Valley Child Development Centers (MVCDC) recently announced plans to construct an $11 million center to serve 200 children. This center consolidated four already existing locations and will include 14 new classrooms, a kitchen, a health clinic, and more services to provide more opportunities to children and staff in the Miami area. The MVCDC is receiving an NMTC investment of an unspecified amount from CityWide Development Corp in addition to other grants from Dayton-Montgomery County Port Authority and the city of Dayton. The center is expected to break ground in June of this year and open after a construction period of 12 to 18 months. Once completed, the school will serve underprivileged children in the area and prepare children to succeed in their educational endeavors and beyond. To learn more about the MVCDC mission, visit their website here.
NORF Companies purchased three buildings in Tyler, TX to renovate into retail spaces and rental housing units. NORF is a New Orleans-based real estate developer that focuses in the Southwest region of the United States and seeks to revitalize historic buildings and surrounding areas. NORF purchased The Lindsey and Wilcox building to renovate into roughly 80 mixed-use and family rental units. The Fair building will be renovated into office space marketed toward tenants in the new rental units. NORF intends to attract some NMTC fundingin addition to utilizing Qualified Opportunity Zone Fund tax benefits and Federal and State Historic Tax Credits. To learn more about NORF’s status in attracting NMTC please visit their website here. To follow along the progress in Tyler, visit the Tyler Morning Telegraph here.
The Human Resources Development Council recently began construction on the Community First Griffin Place, a campus including emergency shelters, food and nutrition programs, and other necessary services to combat homelessness in the Bozeman, Montana area. The total cost of the project is estimated at $28 million, $15 million of which is expected to be from philanthropic donations. Additionally, other sources of funding include NMTC investment and proceeds from selling other properties. The food and nutrition program is expected to be completed by Summer 2023 and the construction of the shelter is dependent on supply chain conditions, but is estimated to take approximately 12 to 18 months to complete. To learn more about this project, click here.
Southwest Transplant Alliance (STA) has recently received a $9.2 million NMTC investment to complete capital improvements on The Legacy Center, the preexisting headquarters of STA. STA is a non-profit organization in Dallas, Texas that facilitates the process of organ donation in Texas. The CDE involved is Ryan, a Dallas-based tax and software provider. The Legacy Center is dedicated to utilizing innovative technologies to streamline the organ transplant process through organ recovery, transplant research, the employment and training of high quality professionals, and education. The center was previously completed in 2020; however, STA is looking to expand its faculty as well as complete construction on a surgical site that will provide additional organ and tissue recovery. Through its NMTC investment, STA hopes to continue its capital improvement efforts and save more lives through organ donation and transplantation. To learn more about STA, visit their website here.
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.