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New Markets Tax Credit News Briefs – February 2018

The Community Development Financial Institutions (CDFI) Fund announced Dec. 14, 2017, that 120 organizations submitted applications requesting nearly $540 million in funding for the fiscal year 2017 (FY17) round of the Capital Magnet Fund program. Capital Magnet Fund awards are granted to CDFIs and qualified nonprofit housing organizations to finance affordable housing activities, related economic development activities and community service facilities. There is $119.5 million available for awards in the FY17 round and awards are expected in early 2018.

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Investments in new markets tax credit (NMTC) developments from 2003-2015 generated more than $156 billion in economic activity and created 1,013,837 jobs in low-income rural and urban communities, according to the third edition of the NMTC Economic Impact Report, released Dec. 8 by the New Markets Tax Credit Coalition. The report, based on U.S. Treasury Department data and survey data, states that the federal tax revenue generated by NMTC investment more than pays for the cost of the program. The report is available at www.newmarketscredits.com.

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Plans for the development of a 20,000-square-foot GreenLeaf Market grocery store and a Zoom brand gas station were moving forward as of Jan. 7. Funding for the $19.6 million property includes $7.5 million in NMTCs from the St. Louis Development Corporation. The Bank of Springfield agreed Dec. 22, 2017, to lend $10 million to development. Development of the gas station is expected to be completed by late summer and the GreenLeaf Market should be finished by late fall.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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