New Markets Tax Credit News Briefs – January 2019

Thursday, January 10, 2019

The Community Development Financial Institutions (CDFI) Fund announced Nov. 6 the opening of the fiscal year 2019 application period for the CDFI Bond Guarantee program. The CDFI Bond Guarantee Program provides long-term, low-cost capital for economic growth in low-income communities. As much as $500 million in bond guarantee is available to eligible CDFIs in 2019, pending Congressional authorization. CDFI certification applications were due through the Awards Management Information System (AMIS) by Dec. 3, 2018, qualified issuer applications are due by Feb. 19 at 11:59 p.m. EST and guarantee applications are due Feb. 26 by 11:59 p.m. EST.

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The CDFI Fund announced Nov. 1 that it resumed accepting CDFI certification applications through AMIS. The CDFI Fund halted the application submission process through AMIS Aug. 1 to make critical system changes. With the resumption of applications, the CDFI Fund prepared guidance for applicants on the CDFI Certification webpage.

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The CDFI Fund announced Nov. 27 that 116 organizations submitted eligible applications requesting more than $570 million in funding under the fiscal year 2018 Capital Magnet Fund round. This is compared to the $143 million in awards available. A total of 57 percent of applicants are certified CDFIs and the remaining 43 percent are nonprofit affordable housing organizations. The awards can be used to finance affordable housing activities, as well as related economic development activities and community service facilities. The applicants propose to serve 49 states, the District of Columbia and Puerto Rico. The CDFI Fund expects to announce awards in early 2019.

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Habitat for Humanity New York City (Habitat NYC) announced Nov. 27 that Karen Haycox, chief executive officer of Habitat NYC and president of the Habitat NYC Community Fund, was elected to the board of the New York State Community Development Financial Institution Coalition. During her tenure at Habitat NYC, Haycox has worked to increase the number of families served through construction and preservation to 2,021 by the year 2021. She also has overseen the development of Sydney House, the largest single-structure, multifamily Habitat for Humanity property in the world. Before joining Habitat NYC, Haycox served as vice president, fund development at Southwest Solutions. She serves on the board of the Stonewall Community Development Coalition and on the board of the Housing Partnership. The coalition works to position CDFIs as the most effective strategy and policy tool to address issues of financial inclusion, housing access, and economic opportunity in New York state.

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Ross, Sinclaire & Associates LLC announced the securing of $18 million in NMTCs in early November for the $20 million campus transformation of DePaul Cristo Rey High School in Clifton, Ohio. The expansion and renovation, which is under construction, will add more than 40,000 square feet and enable enrollment to increase to 425 students. Development plans include a new three-story classroom building, four science labs, a college counseling suite, a new cafeteria/theater facility and a gymnasium. In addition, there will be a student center with personal hygiene space, a wellness suite, a laundry and food pantry to meet the unique needs of the students. Cincinnati Development Fund provided $10 million in NMTCs; DV Community Investment provided $4 million; and U.S. Bank Community Development Fund provided $4 million. DePaul Cristo Rey, sponsored by the Sisters of Charity of Cincinnati, offers a nationally recognized, dual-focus education model to students whose families need significant financial assistance to afford a private, college preparatory program. 


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The Innovate Fund, a community development entity managed by Tax Advantage Group and Greenville Local Development Corporation, announced early November the $13.8 million NMTC allocation for the Brown Packing Co. Inc. in Gaffney, S.C. The third-generation, family-owned meat packing business will undergo a more than $20 million renovation and expansion of the plant. The project will involve the construction/renovation of 66,500 square feet of the 150,000-square-foot facility. The improvements will also include new cooling systems, a new wastewater treatment system, updated locker rooms and employee wellness facilities for both genders. The expansion is expected to create an additional 25 permanent direct jobs.
 

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