New Markets Tax Credit News Briefs – December 2019
The Community Development Financial Institutions (CDFI) Fund Oct. 3 released an updated new markets tax credit (NMTC) application and NMTC application frequently asked questions document. The updated application provides greater detail and examples about what constitutes qualified low-income community investment (QLICI) closing; a new question on how the CDFI Fund will calculate whether an applicant meets the qualified equity investment issuance and QLICI closing thresholds; and a new question concerning how an applicant should approach the application if it submits a request to modify its community development entity service area but won’t know the outcome of the request before the application is due.
Jessie Trice Community Health System in October announced that it is expanding its location in Miami Gardens, Fla. The new facility will provide medical, dental, mental health and pharmacy service for an estimated 13,400 low-income patients. Services will be available on a sliding scale for uninsured or underinsured patients. Florida Community Loan Fund provided $9 million in federal NMTC allocation for the development and equity was provided by Northern Trust.
A groundbreaking ceremony was held in Gloucester, Mass., Oct. 28 for a new Cape Ann YMCA facility. The development was allocated $15 million in NMTCs and $13 million in tax-exempt bond financing from TD Bank NA. Construction is expected to cost approximately $32 million, and upon completion, the Cape Ann YMCA will bring 50 new permanent jobs and will retain the 144 current positions.
Shuman Development Group announced Oct. 28 that the redevelopment of the former A.W. Golden Cadillac dealership in Reading, Pa., will receive an estimated $8 million in NMTCs. The former dealership is being converted into a mixed-use retail shopping center. The development is expected to create 24 temporary, full-time construction jobs, and upon completion, will create an estimated 200 jobs–most of which will be accessible to low-income people.