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New Markets Tax Credit News Briefs - June 2017

The Community Development Financial Institutions (CDFI) Fund announced April 27 that the fiscal year (FY) 2017 round of the Capital Magnet Fund will tentatively open in June. The CDFI Fund expects that up to $120 million will be available in FY 2017 Capital Magnet Fund awards. The Capital Magnet Fund supports financing for the development, rehabilitation, preservation or purchase of affordable housing for economically distressed communities.

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The CDFI Fund published April 27 in the Federal Register an invitation to submit comments on the annual report required from key participants in the CDFI Program and the New Markets Tax Credit (NMTC) program. This includes its Community Investment Impact System (CIIS). CDFIs and community development entities (CDEs) must submit the annual reports while participating in the programs. Comments can be submitted to [email protected]. The deadline to submit comments is June 26.

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Community First Fund announced April 10 an $8 million NMTC investment in the revitalization of 101 NQ, a mixed-use complex in Lancaster, Pa. Zamagias Properties will conduct a $28.5 million renovation on the former Bulova Building, a manufacturing facility. Once completed, there will be 21,000 square feet of retail space, 90,000 square feet of office space and 35 apartments, of which 20 percent will be affordable. There will be an additional top floor of condominiums that will be constructed outside of this investment. Renovations are to be complete in 2019 and will create 195 full-time jobs and 45 construction jobs.

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YMCA of Greater Louisville board of directors gave the go-ahead March 27 for the construction of the Republic Bank Foundation YMCA in Louisville, Ky. YMCA of Greater Louisville secured $28 million in NMTCs from five out-of-state CDEs for the new construction of a multi-use center. The facility will provide traditional YMCA features such as a pool, gymnasium, a fitness center, day care, workout classes and other YMCA activities, as well as services provided by health care-focused businesses, including ProRehab Physical Therapy, Norton Healthcare, which will occupy 6,000 square feet and operate a pediatric and family clinic, as well as nonprofit mental health organization Family and Children’s Place, which will offer free counseling and therapy for victims of abuse and violence. In addition, Republic Bank will lease 2,700 square feet in the building, where it will offer traditional banking services and financial education seminars. The YMCA of Greater Louisville expects to break ground on the 11.5-acre lot before the end of the year.

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St. Louis Development Corporation allocated $10 million in NMTCs April 20 for the development of the new Cortex Building in St. Louis. The building will house Microsoft, BJC Healthcare and a third Cambridge Innovation Center location. Urban Action Community Development of Baltimore, McCormack Baron Salazar and PNC Bank will provide the remaining NTMTCs, bringing the total to $27.5 million. Wexford Science and Technology will develop the $53 million building. In addition to NMTCs, the city of St. Louis approved $9.5 million in tax increment financing (TIF) for the latest, $100 million Cortex phase, which will also include an Aloft Hotel.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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