New Markets Tax Credit News Briefs - July 2021

Thursday, July 8, 2021

A new $35 million, 95,000-square-foot data center facility is in the works in Eatonville, Florida, with $6.5 million in new markets tax credit (NMTC) financing. Mid-City Community CDE, an affiliate of Urban Atlantic, is delivering financing for the property, which will be home to HostDime Global Corp., an Orlando, Florida-based data center infrastructure provider. The site was formerly a preparatory school. Completion is anticipated in 2022.

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Eight U.S. senators and two members of the House of Representatives introduced legislation May 18 to require $500 million in NMTCs to be allocated to “rural job zones” in 2022 and 2023. The Rural Jobs Act defines those zones as low-income communities with populations of less than 50,000 that are not adjacent to an urban area. The bill would also require that at least 25% of the new investment be targeted to persistent-poverty counties and high-migration counties. The bill was introduced in the Senate by Sen. Roger Wicker, R-Mississippi; Sen. Mark Warner, D-Virginia; Sen. John Boozman, R-Arkansas; Sen. Ben Cardin, D-Maryland; Sen. Kyrsten Sinema, D-Arizona; Sen. John Hoeven, R-North Dakota; Sen. Shelley Moore Capito, R-West Virginia; and Sen. Cindy Hyde-Smith, R-Mississippi. In the House, the bill was introduced by Rep. Terri Sewell, D-Alabama; and Rep. Jason Smith, R-Missouri.

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The CDFI Fund May 20 released a request for information on its upcoming procurement of a contractor to lead an effort to increase NMTC investment in native areas. The CDFI Fund will engage a contractor to perform preliminary research and analysis; plan, coordinate and administer a survey; develop a self-assessment guide; and plan, coordinate and facilitate technical workshops for certified CDEs that are native-owned or controlled, native CDFIs and other tribal entities that focus on investing in NMTC Native Areas.

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Construction is underway on a wellness center in Poplar, Montana, built with NMTC equity. MoFi allocated credits for the 50,000-square-foot facility, which will serve members of Fort Peck Tribes. The project is the culmination of 20 years of work after a 2001 partnership with Harvard Medical School to address the issue of life expectancy, which was lower for members of the tribes than others in Montana and nationally. The facility will replace a smaller wellness center.

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The American Bankers Association sent a letter May 17 to multiple members of Congress expressing the organization’s support for the NMTC Extension Act (H.R. 1321/S. 456). The letter expressed the credit’s power in aiding child care facilities, small businesses and CDFI and CDEs owned or controlled by people of color, helping Americans in rural, urban and tribal communities. According to the Urban Institute’s Tax Policy Center, the program provided credits worth $26 billion from 2003 to 2020 and supported more than 5,300 projects across the country from its inception through 2016. Reps. Terri Sewell, D-Alabama, and Tom Reed, R-New York, along with Sens. Ben Cardin, D-Maryland, and Roy Blunt, R-Missouri, sponsored the bill in their respective chambers.

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NMTCs can be drivers of economic opportunities in their communities, according to research released April 28 by the Urban Institute. Reductions in poverty, increases in median income and a rise in the number of businesses resulted from developments. Jobs grow, although new residents may be a bigger factor in job growth than pre-existing ones in that growth. The research further suggested businesses that were growing before the NMTC investments continued to flourish after. Home prices rise and residential lending increase as the developments are expected to have a positive impact on the housing market.

Journal Category: 
New Markets Tax Credit
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