New Markets Tax Credit News Briefs - November 2020

Friday, November 6, 2020

Correction: Chase New Markets Corporation should have been mentioned as a community development entity for the Mott Community College Culinary Arts Facility, the winner of Novogradac Community Development QLICI Awards metro category. An article in the October Novogradac Journal of Tax Credits omitted that fact.

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The Community Development Financial Institutions (CDFI) Fund published a notice of allocation availability in the Sept. 23 Federal Register, making $5 billion in new markets tax credit (NMTC) allocation authority available for the 2020 NMTC allocation round. The 2020 NMTC allocation round is the final round authorized by Congress. Applications are due Nov. 16.

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The CDFI Fund released application information Sept. 10 for the fiscal year (FY) 2020 round of the Capital Magnet Fund, for which 137 organizations requested more than $642.2 million in funding compared to the $173.8 million available. The applicants propose to serve 50 states, the District of Columbia, Guam and Puerto Rico. Of the FY 2020 applicants, 53 percent are certified CDFIs and 47 percent are nonprofit affordable housing organizations. Capital Magnet Fund awards finance affordable housing, related economic development activities and community service facilities. The CDFI Fund said it expects to announce awards in early 2021.

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The CDFI Fund Sept. 24 awarded $204.1 million to 397 CDFIs through the fiscal year 2020 round of the CDFI program and Native American CDFI Assistance (NACA) program. The CDFI program, which invests in and builds the capacity of CDFIs to serve low-income people and communities that lack adequate access to affordable financial services and products, awarded $187.3 million. The NACA program, which facilitates the creating and advancement of Native CDFIs, awarded $16.8 million.

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A bipartisan group of House Ways and Means Committee members submitted a letter Sept. 28 calling on the CDFI Fund to ensure Native communities have fair access to the NMTC. The 10 members–including committee chairman Richard Neal, D-Mass.–pointed out that the most recent round of NMTC allocations did not provide any credits to community development entities that commit 100 percent of their activities to assisting Native communities. Applications for the calendar year 2020 round of NMTC allocations are due Nov. 16.

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The CDFI Fund Sept. 30 announced the approval of a $100 million guarantee under the FY 2020 round of the CDFI Bond Guarantee program, which provides long-term, fixed-rate capital for investments in low-income communities. More than $1.7 billion has been guaranteed since the inception of the CDFI Bond Guarantee program. The $100 million FY 2020 round guarantee will be issued to the Community Reinvestment Fund USA on behalf of Clearinghouse CDFI, a California-based CDFI that plans to use the bond loan to finance charter schools, rental housing and other investments in California, Arizona, Nevada, New Mexico and in sovereign nations in the western United States.

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Cinnaire and Allen Neighborhood Center held a groundbreaking ceremony Oct. 21 for the rehabilitation and expansion of the Allen Neighborhood Center in Lansing, Mich., to create Allen Place. Allen Place is a development at the intersection of food, health, housing and energy innovation. Cinnaire provided a $5.9 million investment for the development and partnered with ANC Holdings LLC, to generate funding for the development. Michigan Community Capital provided a NMTC allocation for the development as well.

Journal Category: 
New Markets Tax Credit
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