indieDwell

New Markets Tax Credits in the News

July 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

JPMorgan Chase

JPMorgan Chase has made significant investments into CDFIs. Kevin Goldsmith, managing director of community development tax credits and intermediaries lending, recently gave an interview with Commercial Observer. In this interview, Goldsmith explained what CDFIs are: “Financial institutions certified by the U.S. Department of the Treasury that bring capital to underserved communities.” He then discussed JPMorgan Chase’s main activity, CDFI loan funds, and explained the CDFI funding process as well as one of the firm’s main partners, Enterprise Community Investment. These investments into CDFIs fund affordable housing projects, job creation, and other community needs and resources. A notable project of the firm is its financing of grocery stores in a part of the New Orleans area which is a food desert. In the last twenty years, JPMorgan Chase has invested over $2 billion into CDFIs. To learn more or read this interview, click here.

Novogradac

Novogradac highlights the new focus of the NMTC industry: racial equity investing. For example, JPMorgan Chase announced a racial equity commitment to close the racial wealth gap among communities of color in 2020. Since this date, the firm has provided 16 projects a total of $221 million of its proposed $30 billion in NMTC investment. Additionally, U.S. Bancorp Community Development Corporation (USBCDC)’s Access Commitment is dedicated to building Black wealth and investing in communities of color to create more opportunities for diverse employees. To read more about this topic, read the full Novogradac update here.  

Projects

indieDwell

indieDwell recently announced that it will open a new manufacturing plant in Brawley, CA – the first indieDwell facility in California. indieDwell is a steel manufacturer for modular housing that aims to produce energy efficient and sustainable structures. This facility will create around 200 jobs and will create quality, affordable housing through the construction of modular homes. This project is possible through the $2 million investment from indieDwell and utilizes NMTC investment from Chelsea Investment Corporation. To read the article, click here, and to learn more about indieDwell, visit the company website here.  

Downtown PKB

Downtown PKB was one of 34 projects that received funding from Opportunity Appalachia. Opportunity Appalachia selected 34 of 75 applications across Central Appalachia that will create 1,700 jobs and create opportunities for engagement in the community, such as community centers. Downtown PKB, specifically, will receive $75,000 to redevelop a building in the downtown central business district. With this funding, Downtown PKB will construct a mixed-use facility that includes retail and residential space. The total project costs are estimated at $8 million and will create 8 to 10 permanent jobs and 25 construction jobs. Opportunity Appalachia plans to utilize investment from banks, private investors, CDFIs, and NMTCs to complete the new facility. To read more about this project, click here.  

The Food Bank of Western Massachusetts

The Food Bank of Western Massachusetts celebrated its groundbreaking ceremony on June 2 for the construction of a new food distribution center. This center, which will replace the current insufficient facility, will more adequately address the issue of food insecurity in Massachusetts, which has been greatly exacerbated by the COVID-19 pandemic. To fund this project, the Food Bank has included financing from federal and state grants (25%), individual gifts (22%), NMTCs (22%), and corporate gifts (18%) for a total of 96% covered. To read more about the ceremony, click 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.